The world’s biggest aluminium producer is to be created from a merger between Russia’s two largest aluminium companies RUSAL and SUAL. Also being added to the mix are the alumina assets of Swiss commodity trader Glencore International. Rapidly rising commodity prices have prompted metals and mining companies around the world to consolidate.
The price of aluminium has risen 9.2% since the start of the year. It is reported that 64.5% of the newly merged company will be owned by RUSAL, 21.5% by SUAL and the remaining 14% by Glencore. RUSAL is controlled by 38-year-old Oleg Deripaska. He recently met President Vladimir Putin and speculation is he received Putin’s blessing for the deal. Deripaska is close to the family of former Russian president Boris Yeltsin. The merged company will produce about 11% of the world’s aluminium, putting them ahead of Alcoa of the US and Canada’s Alcan. The exact value of the deal is unknown but the Financial Times says it is worth around 23 billion euros.