Posted on July 6, 2022
The merger is to ensure diversification of the shareholder structure and additional resistance to sanctions, Nornickel President believes
In his interview with RBC TV, Vladimir Potanin, Norilsk Nickel President and BoD Chairman, President of Interros Holding Company, said he agreed to discuss a merger of Nornickel and Rusal.
“I have sent a letter today to confirm the agreement to start the process of the merger with Rusal,” Potanin told RBC adding that the proposal on the merger came from Rusal management.
The merger would let create a national champion and further diversify the shareholder structure, believes Vladimir Potanin while not seeing the companies’ business synergy so far.
“We have always been negative about such mergers since we did not see and still do not see any production synergies. We have different competitive advantages… However, other factors have emerged now. It’s sustainability, it’s a ‘green’ agenda. Rusal produces the greenest aluminum among other companies. Norilsk Nickel also undertakes great efforts to this end and produces nickel and palladium for batteries, for the future green economy,” said the head of Nornickel.
Apart from creation “a national champion” and diversification of the shareholder structure, the merger will ensure additional resistance to sanctions and state support of the company’s projects in Russia.
“All this made us return to Rusal’s proposal and reconsider it. So today we agree to start the talks,” summarized Vladimir Potanin.
MMC Norilsk Nickel is a diversified mining and metallurgical company, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products. The production units of Norilsk Nickel Group are located at the Norilsk Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland and South Africa.
RUSAL is a leading company in the global aluminium industry, producing metal with a low carbon footprint. 90% of the Company’s aluminium is produced from renewable electricity, and by implementing innovative and energy-saving technologies RUSAL is able to reduce greenhouse gas emissions at all production stages. This has enabled RUSAL to become one of the first in the world to master the production of ‘green’ metal under the ALLOW brand.