The Russian Federation Federal Antimonopoly Service decided to give the general approval to the merger of RUSAL, SUAL Holding, and Glencore.

SUAL Group creditors have officially confirmed their agreement to the changes in the company’s shareholder structure. RUSAL shareholders, for instance, will own 66% of the new company, SUAL Holding shareholders will get a 22% share of the assets, Glencore shareholders are to own 12% of the company’s shares.

The merger is going to raise the net debt and change the debtors’ financial ratios for a while, which has also been agreed upon by the creditors. This agreement was the necessary condition of the lending agreements worth $850m.

After the merger has been fully completed, the new company is to become the world’s largest aluminum and alumina producer, with over 110,000 employees working in 17 countries located on five continents. Its annual production output is expected to come to approximately 4 tons of aluminum and 11m tons of alumina. It will also possess a 12.5% share of the global primary aluminum market and a 16% share of the global alumina production.

‘I believe that the merger of the three companies will lead to the arrival of Russia’s first multinational corporation and a global aluminum leader, which is in full compliance with the international trends toward globalization and consolidation. The new company will promote Russia’s building up its position as that of the full-fledged participant of the international economic integration process as well as the country’s increased influence on the world’s markets. We have decided to approve of the transaction and are hoping to finalize all the corresponding documents in two weeks’ time,’ said Igor Artemiev, Head of the Federal Antimonopoly Service.