02/04/2007
The merger of the two Russian aluminium companies RUSAL and SUAL, with the alumina assets of Glencore International into one Jersey registered company has been completed this week.
The new company known as United Company RUSAL has become one of the world’s largest companies and the largest aluminium company and it is believed that it is now the largest Jersey trading company in overall value, owning a business with an estimated worth of some US$30 billion.
Completion of the merger follows approval by the European Commission and the Federal Anti-Monopoly Committee of Russia.
The combined company employs more than 100,000 people in 17 countries across five continents and will have an annual output of four million tonnes of aluminium and 11 million tonnes of alumina. The anticipated annual revenues will be US$12 billion.
In the merger deal, which was first agreed late last year, Marc Yates of Jersey law firm Ogier formed the new United Company RUSAL and acted for RUSAL, the largest of the three parties and 66% shareholder in the new entity.
“Merger negotiations were quite long and complicated and the bringing together of the three different groups under one company has been a major task logistically taking into account the requirements of each of the parties,” said Marc Yates.
“Jersey was chosen as a location for United Company RUSAL because of its standing as a well regulated finance centre, because of its closeness to London, the strength and depth of the infrastructure of the finance industry professionals here and having a recognised and established legal system regarded as equivalent to the English legal system”.
United Company RUSAL has publicly stated that one of its next steps in its development after integration of the merged businesses, is an International Public Offering of its shares to fund its future development.
Marc Yates said: “The next stages are going to be very exciting from a Jersey perspective. To be involved in the development and structuring of a global leader in its industry is a real opportunity for our team at Ogier as well as for Jersey as a whole”.
Also advising RUSAL were London firm Ashursts (lead by Andrew Edge and David Kershaw), Russian firm Egorov, Puginsky, Afanasiev & Partners (lead by Dimitry Afanasiev) and Gibson Dunn & Crutcher LLP (lead by Nick Tomlinson).
