Vladimir Potanin and Alisher Usmanov have agreed to swap assets in a move to create world's leading metal company.

The Russian tycoons also invited RUSAL to join them although the merger could be complicated by the aluminium producer's interest in Norilsk Nickel.

Mr Usmanov, who owns Gallagher, will buy up to ten per cent in Norilsk Nickel, the world's top palladium producer.

In response, Mr Potanin's Interros will buy up to 25 per cent in Metalloinvest - Mr Usmanov's iron ore miner and steel producer.

According to reports from Reuters, RUSAL said that it hoped decisions surrounding investment in Norilsk Nickel would be approved by the board.

In addition, RUSAL will receive a quarter of over $900 million after Norilsk Nickel announced its dividends for 2007.

RUSAL owns 25 per cent plus two shares in Norilsk Nickel and hopes to be elected to the board later this year.

But a statement from Denis Morozov, the general director of Norilsk Nickel, said that he would not stand for election to the board because the focus should be on independent candidates.

Source:

Russian tycoons agree to set up mining giant, 28/05/08

http://www.reuters.com/article/mergersNews/idUSL2869246620080528?sp=true

Russia's Norilsk raises 2007 dividend by 25 pct, 28/05/08

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL2875284120080528?sp=true