MOSCOW - Russian aluminum producers RUSAL and SUAL GROUP are teaming up with GLENCORE INTERNATIONAL of Switzerland to create the UNITED COMPANY RUSAL, by merging their respective aluminum and alumina assets. The new company will become the world's largest aluminum and alumina producer.
The new Rusal will employ more than 110,000 people in 17 countries on five continents. The annual volume of production will be approximately 4 million tonnes of aluminum and 11 million tonnes of alumina. The company will account for approximately 12.5% of global aluminum and 16% of global alumina production.
(For comparison, annual primary metal capacity controlled by Canada's ALCAN is 3.5 million tonnes. Annual capacity for smelter-grade alumina is 5.3 million tonnes and for specialty aluminas is 722,000 tonnes.)
The new company will be owned 66% by Rusal, 22% by Sual and 12% by Glencore.
The parties expect to complete the deal by April 1, 2007, subject to approval by antitrust regulators in Russia and a number of other countries and the consent of other stakeholders through the exercise of their beneficial rights. The agreement also calls for the transformation of the new company into a public entity through an initial public offering on the London Stock Exchange within three years from the date of the deal's closing.
Readers wishing to give their Russian language skills a workout can find further information about the merger at www.AluminiumLeader.com (be careful to spell aluminium with an extra "i"). The website is also available in English.
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