Rusal is to buy a stake in Norilsk Nickel from Mikhail Prokhorov's Onexim Group, it has been announced.

The acquisition is intended to pave the way for Rusal, which is owned by billionaire oligarch Oleg Deripaska, to become one of the world's largest diversified mining companies as well as for the potential takeover of Norilsk Nickel.

News of the deal follows Norilsk figurehead Vladimir Potanin's decision to not exercise his right to acquire a 25 per cent stake in the firm for $15.7 billion.

In return, the deal will see Prokhorov acquire a 11 per cent stake in Rusal as well as an undisclosed cash consideration.

Alexander Bulygin, Chief Executive Officer of Rusal, said: "Our company will join the ranks of the world's top five mining giants, providing significant growth for the company to its shareholders and reinforcing the international reputation of Russia as a strong industrial state."

The acquisition is expected to be finalised in the first quarter next year.

Summary:

Norilsk Stake Goes to RusAl, 24/12/07

http://www.themoscowtimes.com/stories/2007/12/24/003.html


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