OREANDA-NEWS. RUSAL, the world’s third largest aluminium producer, SUAL Group, one of the world’s top ten aluminium producers, and Glencore International AG, the Swiss natural resources group announce today that they have signed an agreement to create the “United Company RUSAL” by merging their respective aluminium and alumina assets.

According to the press service of RUSAL, the new company will become the world’s largest aluminium and alumina producer, employing more than 110,000 people in 17 countries on five continents. The annual volume of production will be approximately 4 million tonnes of aluminium and 11 million tonnes of alumina. The company will account for approximately 12.5% of global aluminium and 16% of global alumina production, respectively.

The combined company will own bauxite mining, alumina refinery, aluminium smelting and foil production facilities. Under the terms of the share-for-share deal, EN+ as RUSAL's shareholder will own 66% of the new company, with SUAL's shareholders owning 22% and Glencore 12%, respectively.

The parties expect to complete the deal by 1 April 2007, subject to approval by antitrust regulators in Russia and a number of other countries and the consent of other stakeholders through the exercise of their beneficial rights. To manage the process, the companies will create a coordination committee, which will be headed by SUAL representative.