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. Last Updated: 07/27/2016

RusAl Finishes Merger With Rival SUAL

Russian Aluminum completed a merger with domestic rival SUAL Group and the alumina assets of Swiss trader Glencore International to form the world's largest aluminum maker with annual sales of $12 billion.

The new company, known as United Company RusAl and 66 percent owned by Oleg Deripaska, will make 4 million tons of aluminum per year, the three producers said Tuesday in a statement. RusAl CEO Alexander Bulygin will take over the same position at United Company RusAl.

Viktor Vekselberg, part owner of SUAL, will act as chairman, initially on a one-year contract, Bulygin said. The company will make an IPO within three years. SUAL shareholders, including Vekselberg and Len Blavatnik, will have 22 percent of the new entity. Glencore will have 12 percent.

The firm's board of directors will have 12 members after the appointment of a third independent director by July 1. The board will include Glencore CEO Ivan Glasenberg.

"This deal is a proactive response to several significant industry trends: dynamic growth, competition to secure access to energy and raw material resources, and active consolidation to enhance competitive positions," Bulygin said.