Article author:
Reuters
Norilsk's largest shareholder, Russian businessman Vladimir Potanin, is ready to discuss the possibility of a merger between mining giant and aluminum producer Rusal, in part as a defense against Western sanctions. Said.
Potanin told RBCTV on Monday that he had sent a letter confirming that he had agreed to begin discussions on the merger. This will allow us to further diversify our shareholder base.
He said the need to "gain additional stability against sanctions" and the potential requirement for state support for projects in Russia are one of the reasons for discussing this deal. He added that the proposal came from Rusal's management.
Rusal, the world's largest producer of aluminum outside of China, did not immediately respond to Reuters' request for comment.
Rusal's Hong Kong-listed shares increased 11.35% and its largest shareholder, En +, increased 9.1% in Moscow. Nornickel was down 2.3% in Moscow by 0826 GMT.
Western sanctions imposed on Russia during the Ukrainian War did not target Norilsk, the world's largest producer of palladium and refined nickel. But last week, the UK announced sanctions on Potanin.
According to Refinitiv Eikon data, the market value of Nornickel and Rusal at the end of the transaction on Monday was $ 49 billion and $ 15 billion, respectively.
The Kremlin is closely monitoring changes in ownership involving the Russian flagship company.
US Sanctions
Rusal is subject to sanctions imposed by the US from April 2018 to early 2019, causing global aluminum prices to skyrocket. , Washington is a list of sanctions when Rusal's founder Oleg Deripaska agrees to relinquish its control.
Deripaska is still on the US sanctions list, but is still a powerful tycoon in Russia.
A potential transaction is the risk of future dividend payments for Norilsk, with limited economic synergies, BCS analysts said in a note.
Potanin acknowledged the lack of production synergies, but said the deal was justified by other discussions, including the transition of the two companies to a "green economy."
Potanin owns a 36% stake in Norilsk and has been Chief Executive Officer for 10 years. Rusal currently owns 26% of Nornickel.
Since Rusal's purchase of shares in 2008, Nornickel and Rusal shareholders have been involved in several controversies over the management of mining giants, dividend payments and the size of their investments. ..
Since the start of the Russian-Ukrainian War, Potanin has already acquired Rosbank from Societe Generale when French lenders withdrew from the Russian market, before adding shares in the TCS Group. (Report by Reuters, edited by Mark Trevelian)
