Russia United Company RUSAL is discussing the full buyout or merger with diversified miner, Norlisk Nickel, which holds platinum, nickel and palladium operations.

According to Vedomosti Business Daily, Viktor Vekselberg, a billionaire shareholder in RUSAL, said that the firm was in talks with Vladimir Potanin who owns 25 per cent in Norilsk.

RUSAL has already agreed to buy Mikhail Prokhorov's 29 per cent stake in Norilsk in exchange for 11 per cent of RUSAL and a cash sum.

In December Mr Potanin declined his right of first refusal to buy Mr Prokhorov's stake in Norilsk for $15.7 billion.

RUSAL has applied for regulatory approval in seven countries and expects the deal to close during the first quarter of 2008.

Norilsk has a market value of $46 billion and mines over half of the world's palladium and one fifth of the world's nickel.

Oleg Deripaska owns 66 per cent of RUSAL while 22 per cent belongs to the former shareholders of aluminium company Sual.

Source:

Russia's RUSAL, Norilsk discuss full merger-paper, 22/01/86
http://www.reuters.com/article/mergersNews/idUSL2224902920080122

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