MOSCOW, Aug. 30 (UPI) -- Moscow has OK'd consolidating Russia's aluminum industry under the oversight of a Kremlin-connected oligarch to form the world's largest aluminum company.
OAO Russian Aluminum, also known as Rusal, will buy OAO Susal Group, a domestic rival, plus the aluminum assets of Glencore International AG to form the world's largest aluminum company, the Financial Times reported Wednesday.
The three parties signed a non-binding merger agreement late last week that envisions an all-stock $30 billion deal and a listing on the London Stock Exchange within three years.
The deal was personally approved by current Russian President Vladimir Putin.
Upon completion of the merger, Rusal shareholders will own 64.5 percent of the new company, Susal shareholders will own 21.5 percent and Glencore shareholders will own 14 shareholders.
The combined company will produce 4 million metric tons per year of aluminum and 11 million tons per year of alumina, the raw material for producing aluminum.