RUSAL-SUAL merger to create a $30 billion Russian aluminum giant

30 August 2006

Mumbai: Russia's top aluminum producer RUSAL will take over rival SUAL and the aluminum assets of Swiss commodities trading house Glencore to create a world leader worth around $30 billion.

The deal, to be finalised in October, would give shape to the world's number one aluminum producer with output of 4-million tonnes per year, and the top alumina producer with output of 11-million tonnes.

RUSAL is currently the world's third-largest aluminum producer after Alcoa of the US and Alcan of Canada.

Under the deal, RUSAL would own 64.5 per cent of the new firm, SUAL 21.5 per cent and Glencore 14 per cent, investment bankers said without giving the details.

Glencore has alumina refining assets, including the Auqhinish refinery in Ireland, which it owns outright, and Windalco and Alpart in Jamaica, where it has 93 and 65 per cent respectively. It will also contribute its 44 per cent stake in the Eurallumina refinery in Italy and its wholly owned Kubikenborg Aluminum AB aluminum smelter in Sweden.