Rusal has announced that it has purchased 25 per cent of Norilsk Nickel, the world's largest nickel producer.

The transaction seems to resolve a dispute between the two largest stakeholders at Norilsk Nickel, Mikhail Prokhorov and Vladimir Potanin although the introduction of Rusal's Oleg Deripaska could cause friction.

Rusal bought the stake from Mr Prokhorov with cash and 14 per cent shares in Rusal.

Denis Morozov, General Director of Norilsk Nickel, said: "On behalf of Norilsk Nickel's management I would like to welcome UC Rusal as a large shareholder in our Company.

"The acquisition of such a significant stake demonstrates once again the investment appeal and strong prospects for the further growth of Norilsk Nickel," he added.

"The management of Norilsk Nickel continues its efforts to strengthen the Company's leadership in the world mining and metals industry and ensure stability of its activities in the interests of our shareholders, employees and the regions where our operations are located," Mr Morozov said.

The International Herald Tribune reported that Rusal had nominated four new members to serve on the Noilsk Nickel board.

Source:

Closure of acquisition of a large stake in OJSC MMC Norilsk Nickel, 24/04/08
http://www.nornik.ru/en/press/news/2274/

Nickel deal in Russia paves way for creation of mining giant, 24/04/08
http://www.iht.com/articles/2008/04/24/business/nickel.php