OJSC MMC Norilsk Nickel announces regulatory clearance for the acquisition of OMG Nickel Business
OJSC Mining and Metallurgical Company Norilsk Nickel (”Norilsk Nickel”) is pleased to announce that it has received necessary regulatory clearances for the transaction with OM Group, Inc. (”OMG”) to acquire its nickel business (the ”Nickel Business”). Receipt of these approvals concludes an important step towards closing the transaction which is expected on March 1, 2007.
On February 6, 2007 the European Commission cleared the proposed transaction under the EU Merger Regulation. In addition, Norilsk Nickel obtained approvals from the Australian Government under Australia’s foreign investment laws as well as from the Ministry of Commerce of the People’s Republic of China.
Norilsk Nickel will acquire the Nickel Business for $408 million in cash, which will include the following assets:
”¢ Harjavalta Nickel refining operations in Harjavalta, Finland ”¢ Cawse nickel mining and processing operations in Western Australia ”¢ A 20% stake in MPI Nickel Pty. Ltd. (”MPI”), which operates the Black Swan and Silver Swan nickel mines in Western Australia and is developing the Honeymoon Well project
”¢ Up to an 11.1% holding through common shares and convertible debt in Talvivaaran Kaivososakeyhtiã¶, a biological heap-leaching project in the Kainuu Region in Finland.
With this acquisition, Norilsk Nickel will further extend its operations internationally to Australia and Finland, and will strengthen its position in the global mining and metals industry. The company will increase refined nickel production capacity by up to 60,000 metric tons per annum, equivalent to an additional 35,000-40,000 tons per annum of refined nickel products excluding nickel produced under current tolling arrangements. The company is excited about gaining access to best in class operational skills and laterite HPAL leaching technology, as well as extending its product line to include nickel salts and briquettes.
Deputy General Director Tav Morgan said, ”This transaction represents a significant step in Norilsk Nickel’s plans to further expand its position in the nickel industry, and we expect it to lead to further growth opportunities. Going forward, we plan to undertake further business development activity as we seek out opportunities with potential partners aimed at implementing and enhancing our production strategy.”
Since the announcement of the transaction on November 20, 2006, Norilsk Nickel has been preparing integration plans to ensure continuity of operations, further develop the Nickel Business, and capture synergies to strengthen the financial performance of the company.
ABOUT OJSC MMC NORILSK NICKEL
OJSC MMC Norilsk Nickel is Russia’s largest mining and metallurgical company and the world’s largest producer of nickel and palladium, as well as a major producer of platinum and copper. OJSC MMC Norilsk Nickel is listed on the MICEX and RTS Russian stock exchanges (GMKN_RU), and the company’s ADRs are traded over the counter in New York (NILSY_US), London (MNOD_LI) and Berlin (NNIA_GR). For more information visit the Company’s web site at http://www.nornik.ru/en/
ABOUT OM GROUP, INC.
OM Group is a leading, vertically integrated international producer and marketer of value added, metal-based specialty chemicals and related materials. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia, Africa and Australia. For more information, visit the Company’s web site at http://www.omgi.com
Press service of MMC Norilsk Nickel Tel: +7 (495) 797 8294 Fax: +7 (495) 786 8394 E-mail: uosmail@nornik.ru
www.nornik.ru/en/
