MOSCOW (AP) – OAO Rusal, Russia's biggest aluminum producer, will take over local rival Sual Group and the alumina assets of Swiss-based commodities trader Glencore International AG, making Rusal the world's biggest aluminum producer, an official close to the negotiations said Wednesday.
The all-share deal, to be officially announced in October, gives give Rusal 64.5 percent in the combined company and Sual and Glencore 21.5 percent and 14 percent, respectively, said the official, who declined to be identified.
The new company will have an annual output of 4 million metric tons of aluminum and 11 million metric tons of alumina, according to a report Wednesday in the Financial Times, that also said the deal is worth $30 billion.
A stake in the new business would be sold on a foreign stock market three years after the company is created, said the official. Rusal would pick the company's management team while Sual would be allowed to select the chairman of the board of directors, commented the official.
Spokesmen for Sual, Rusal and Glencore declined to comment.