Jan 18 2007
RUSAL, the world's third largest aluminium producer, presented to the Russian Federation Antimonopoly Service committee the advantages of the formation as well as the development strategy of the United Company RUSAL.
Alexander Bulygin, RUSAL Chief Executive, said: «We are creating the new global leader in the aluminium industry by joining the forces of RUSAL, SUAL and alumina assets of Glencore, the Swiss natural resources group. This transaction will ensure the access to high quality raw materials, necessary for aluminium production and historically lacking in Russia. At the same time, this transformatory deal will raise our competitive abilities through the concentration of investment, integration of technologies and know how. The major competitive advantages of the united company — global presence in key markets, access to energy and raw materials, unique manufacturing capability and financial strength will provide the basis for the further development of the company as a global energy and metals corporation.» The new united company will become the largest producer of aluminium and alumina in the world. 110,000 people will be employed by the company in 17 countries on 5 continents. The annual production volume will amount to about 4 million tonnes of aluminium and 11 million tonnes of alumina. After the integration process is compete, the company's share of the global market of primary aluminium will reach 12.5% and 16% of the world's alumina production. The deal is planned to be closed by April 2007 after the receipt of necessary approvals by antimonopoly authorities of a number of countries.
Igor Artemyev, Head of the Federal Antimonopoly Service, comments on the presentation: «I think that the merger of the three companies will signify the emergence of Russia's first transnational corporation, a leader in the world's aluminium industry, which fulfills the globalization and consolidation trends in the world. This move will strengthen Russia's role as a fully-fledged participant in international economic integration and encourage growth of its influence on the global market. We have made a decision in principle to approve of the deal and within two weeks we plan to complete the paper work related to our final conclusion.»
The united company will comprise bauxite, alumina, aluminium and foil production assets. In accordance with the agreement, En+ as RUSAL's shareholder will own 66% of shares of the united company, with the remaining 22% and 12% going to SUAL and Glencore, respectively.