Fight over Norilsk Nickel hardens
Russian aluminium giant Rusal has got a 4,5 billion USD credit intended for the acquisition of a 25 percent stake in Norilsk Nickel. Meanwhile, Norilsk Nickels management continues talks with iron major Gazmetall over a possible company merger.
Whatever happens, it seems clear that Russia will get a new mining and metallurgy company of giant proportions.
According to RIA Novosti, several banks now confirm that Rusal has got a 4,5 billion USD credit. The money is likely to bring the aluminium major a step closer to the acquisition of Norilsk Nickel.
The battle over the nickel producer is far from over, however. The company management is in negotiations with Gazmetall, the world’s fourth biggest iron producer owned by business tycoon Alisher Usmanov, over a possible company merger. The merger, supported by co-owner of Norilsk Nickel Vladimir Potanin, is to help the company avoid being swallowed by Rusal, Vedomosti reports.
According to Kommersant, Gazmetall has already bought up to 4 percent of Norilsk, thus strengthening its position in the fight with Rusal. Together with Mr. Potanin’s 25 percent, the Norilsk Nickel-Gazmetall partnership might have a stake big enough to shrug off the contenders from Rusal
The fight over Norilsk Nickel started when Mikhail Prokhorov, co-owner of the company with Vladimir Prokhorov, decided to sell his share of the company. The decision left Mr. Potanin in a vulnerable position, as Prokhorov offered his stake to Rusal.
Rusal is ready to buy 25 percent of Norilsk Nickel. For that it will have to cash out about 6 billion USD. In addition, the mother company of Norilsk Nickel, the Onexim, will get an 11 percent of the new company giant.
While Norilsk Nickel is the biggest nickel producer in the world with its 20 percent market share, Rusal is one of the world’s biggest producers of aluminium with a 12 percent market share. Gazmetall on the other hand is the world’s fourth biggest producer of iron ore.
