Announcement relating to OJSC MMC Norilsk Nickel
Trafigura announces it is finalising arrangements to buy 8% OJSC MMC Norilsk Nickel share capital
21 December 2010 - Trafigura Beheer BV announces it is finalising arrangements to buy approximately 8% of the share capital of OJSC MMC Norilsk Nickel (“Norilsk”) and strengthen its commercial ties with the company.
Trafigura believes there are considerable synergies between the companies and building a strategic relationship will produce benefit to both parties. Norilsk has significant reserves as well as expertise in mining and metallurgy. Trafigura brings the benefits of global reach, strong origination, deal structuring and distribution.
Simon Collins, Head of Refined Metals for Trafigura, commented:
“Strengthening our relationship secures accelerated growth in the nickel business and offers the market, Norilsk, and Trafigura many benefits. For ten years now, we have enjoyed an excellent relationship with Norilsk Nickel. We are old friends and we look forward to seeing this relationship mature, particularly in the area of nickel raw materials and intermediates. We believe that this can offer real value all round. Higher prices and volatile markets are changing the supply/demand dynamics for nickel. This creates new opportunities, as well as new challenges, for trading nickel in its various forms.
The intention is to create a partnership with Norilsk that provides a fast-track expansion plan into the nickel market by having better direct access to the production of the material. This plan is in line with our strategy to seek competitive advantage in the metals business by investing directly in a variety of supporting assets and infrastructure”.
Trafigura press office:
Tel: +44 207 009 1708 or firstname.lastname@example.org