Rusal Proceeds To Buy 25% Of Norilsk Nickel From Onexim

MOSCOW (Dow Jones)-United Co. Rusal, Russia’s largest aluminum and alumina producer, said Friday it is proceeding to buy a 25% plus one share interest in OAO Norilsk Nickel (GMKN.RS), a deal that may lead to full control of the world’s largest nickel producer.

The news comes after Vladimir Potanin earlier Friday rejected a chance for his holding Interros Group to buy the 25% stake from former business partner Mikhail Prokhorov’s holding company, Onexim Group, for $15.7 billion.

"We intend to create Russia’s first global diversified metals and mining company," said Rusal Chief Executive Alexander Bulygin in a statement. "Our company will join the ranks of the world’s top five mining giants."

The company also said it has received commitments from ABN Amro, PNB Paribas, Credit Suisse and Merrill Lynch to provide a credit facility to finance the deal.

Norilsk shares were up 1.3% at $271 at 1053 GMT in Moscow, against a slightly higher overall market.