Palladium is on the move in Russia, one of the worlds major suppliers. The Russia United Company RUSAL has been discussing the full buyout or a even merger with the diversified miner, Norlisk Nickel, who have palladium and platinum operations.

According to Vedomosti Business Daily, Viktor Vekselberg, a billionaire shareholder in RUSAL, said that the firm was in talks with Vladimir Potanin who owns 25 per cent in Norilsk.

“I met Volodya (Vladimir Potanin) before the New Year. Volodya in general believes that such a merger would make sense but there are many details we need to discuss and understand to see how such a big deal can be structured,” Vekselberg said. “Sooner or later we and Potanin will reach agreement,” he added.

RUSAL has already agreed to buy Mikhail Prokhorov’s 29 per cent stake in Norilsk in exchange for 11 per cent of RUSAL and a cash sum.

In December Mr Potanin had declined his right of first refusal to buy Mr Prokhorov’s stake in Norilsk for $15.7 billion.

RUSAL has applied for regulatory approval in seven countries and expects the deal to close during the first quarter of 2008.

Norilsk has a market value of $46 billion and mines over half of the world’s palladium and one fifth of the world’s nickel.

Oleg Deripaska owns 66 per cent of RUSAL while 22 per cent belongs to the former shareholders of aluminium company Sual.

This entry was posted on Wednesday, January 23rd, 2008 at 3:07 pm and is filed under Palladium News.