The biggest aluminum producer of Russia, OAO Rusal, will take over local rival Sual Group and the alumina assets of Swiss-based Glencore International AG becoming the world's biggest aluminum producer, an official close to the negotiations said Wednesday.
The official, who declined to be identified due to the sensitivity of the talks, said that the all-share deal would be tied up in October and would give Rusal 64.5 percent in the combined company and Sual and Glencore 21.5 percent and 14 percent, respectively, AP reports.
According to a report Wednesday in the Financial Times, which cited a nonbinding agreement signed Friday by the parties, the company formed would have an annual output of 4 million metric tons of aluminum and 11 million metric tons of alumina, the raw material used to produce aluminum. The paper said the deal would be worth US$30 billion (23 billion euro).
News of the deal, which has been in the works for the past 18 months, comes as Russia seeks to extend its reach into global markets and just months after Severstal's failed bid to become the worlds biggest steel producer by merging with Luxembourg-based Arcelor.