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. Last Updated: 07/27/2016

Norilsk's LionOre Share Reaches 98%

Norilsk Nickel said Tuesday that it had acquired over 97.7 percent of the shares in Canada's LionOre Mining International and was starting a mandatory acquisition of the remaining shares.

The latest acquisition of shares secures Norilsk's 6.8 billion Canadian dollars ($6.45 billion) takeover of LionOre, making the company the first to produce up to 300,000 tons of nickel a year.

Norilsk said in a statement that it would proceed with the compulsory acquisition of the remaining shares under Canadian law as its offer to acquire LionOre had been accepted by holders of more than 90 percent of the outstanding common shares.

Norilsk paid 27.50 Canadian dollars ($26.07) per LionOre share. Its offer for the world's 10th-largest nickel producer was higher than a rival bid by Xstrata.

Nickel, used in making stainless steel, hit an all-time high of $51,800 a ton May 9. Norilsk boosted net profit 154 percent to $5.97 billion last year. Revenues rose 61 percent to $11.55 billion.