Giant ahead as metal firms move to merge
Published time: 22 Aug, 2006 05:58 Edited time: 22 Aug, 2006 09:58
Aluminium producers Rusal and Sual appear to be heading for a merger in the autumn, creating one of the world's majors. The two big rivals on Russia’s market joined forces last year in a deal to build a 1.4 million-ton manufacturing complex in the Komi re
Co-operation now looks on a larger scale in a move to build a global giant with 3.7 million tons annual capacity. Neither company would comment on any merger. Analysts said it would play to the strengths of both partners. Rusal was short of raw materials, a problem the deal could solve, they noted.Estimates rate a unified company worth between $18 billion and $20 billion, a domestic market monopoly.