Giant ahead as metal firms move to merge

22 Aug, 2006 05:58 / Updated 18 years ago

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.