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...palladium, copper platinum miner Norilsk Nickel from Mikhail Prokhorov's Onexim Group.
The stake purchase obtained clearance on 31 January 2008 from Russia's Federal Antimonopoly Service (FAS), at which point Alexander Bulygin, chief executive officer of UC Rusal declared boldly: "This development supports the creation of Russia's first global diversified metals and mining corporation. Our ambitious diversification strategy will see the company join the ranks of the world's top five metals and mining giants."
Under the terms of the deal, Prokhorov will receive an estimated US$4.44bn in cash--with some reports suggesting a further deferred payment of around US$2.7bn--and Onexim will be given an 11% stake in the enlarged share capital of UC Rusal.
Potanin--Prokhorov split
In a separate transaction, revealed since receiving FAS clearance, UC Rusal is negotiating to buy a further 2% stake in Norilsk Nickel from KM-Invest, which holds a total of around 7.4% in the company.
KM-Invest is controlled jointly by Prokhorov and Vladimir Potanin, Prokhorov's former business partner and co-owner of Norilsk Nickel. Potanin holds approximately 22% of Norilsk Nickel (not counting any KM-Invest interest), a stake which had mirrored that of Prokhorov, until Prokhorov made further purchases in 2007 to create a blocking interest.
Over the last year, Potanin and Prokhorov have been seeking to separate their interests, originally combined under the holding company Interros, through which they controlled Norilsk Nickel. In early 2007, the pair announced a division, to the effect that Interros would remain Potanin's, while Prokhorov would quit and establish his own managing company--Onexim Group. There has been a continuing dispute over whether Prokhorov still...
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