The Windalco Kirkvine bauxite plant in Manchester owned by Glencore, one of the merger partners. - File

Russian regulators have given final approval to a three-way merger that would create the world's biggest aluminum producer, the companies involved in the deal said Wednesday.

At the start of the month EU regulators also cleared the deal, which will see Russia's biggest aluminum producer, OAO Rusal, absorb rival Sual and the aluminum assets of Swiss-based commodities trader Glencore.

The merger has likely implications for Jamaica.

Rusal had attempted to buy bauxite assets here in 2004 from Kaiser, but lost out.

Glencore is 93 per cent majority owner of the Windalco plant and mines - capacity 1.26 million tonnes of alumina - with Jamaica as its seven per cent minority partner; and 65 per cent owner of Alpart, since 2004, in parnership with Hydro Aluminum, which owns 35 per cent of the 1.65 million tonne operation.

Acquisitions

Glencore acquired Windalco in 2001. Both its Kirkvine and Ewarton refineries are connected by railroad to Port Esquivel - which is also owned by Windalco - from where the alumina is shipped to its primary market in North America.

Alpart sells to Europe and Asia.

The Rusal merger is expected to topple Alcoa Inc, which also owns bauxite assets in partnership with Jamaica, from its pole position in the global industry.

The Federal Anti-Monopoly Service agreed to the merger in principle in January, and analysts had predicted that the Russian approval would be a formality.

"Today's announcement ... is of great significance, supporting the creation of Russia's first transnational corporation and the new leader of the global aluminum industry," Rusal CEO Alexander Bulygin said in a statement released jointly Wednesday with the other two companies.

"We are now ready to round off the merger and plan to close the deal in the near future."

The company had said earlier that it expected the deal to close in April. Approval for the tie-up had also been granted by the anti-monopoly authorities of Ukraine, Montenegro and Turkey, the statement said. Bulgarian regulators must still give their approval for the merger.

The European Commission had said the deal would not significantly impede competition in Europe because the new company would continue to face "effective" rivalry.

The new company will be the world's largest aluminum producer - with nearly four million tons of aluminum per year, or about 12 per cent of global output - surpassing current industry leader, U.S.-based Alcoa Inc.

- AP and Gleaner reports