NoD: FAS paves the way for world largest aluminium company

The anti-monopoly regulator has approved a three-way merger that would create the world's biggest aluminum producer, the Federal Anti-Monopoly Service said. The tie-up will see RusAl, the country's biggest aluminum producer, absorb rival SUAL as well as the aluminum assets of Swiss-based commodities trader Glencore, creating a global giant with smelters and refineries across Russia and facilities on four continents. Company officials have said they hope the deal will be completed by April. Under the terms of the agreement, RusAl will issue new shares to acquire SUAL, which is controlled by metals and oil tycoon Viktor Vekselberg, as well as the Glencore assets. SUAL and Glencore will hold 22 percent and 12 percent stakes respectively in the new company, a $30 billion giant that will produce nearly 4 million tons of aluminum per year.

Why it is important: Last barrier to the formation of the national champion (and world largest company) in aluminium industry is removed. This could be expected though.