AMERICAN ALCOA CO. PERMITTED TO BUY RUSAL'S TWO WORKS

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MOSCOW, November 1 (RIA Novosti) - The Federal Antimonopoly Service allows the American company Alcoa, the world's largest producer of aluminium, to buy the Samara Metallurgical Works (Volga region) and the Belokalitvenskoe Metallurgical Production Association (southern Russia), owned by Russian Aluminium (RusAl).

The FAS service is through with the study of the deals, says its press release, which has come to hand at RIA Novosti.

"Our decision will be positive. We will issue ALCOA a permission to buy the Samara-based and Belokalitvenskoe facilities, though with our behavioural terms", said the FAS chief Igor Artemyev, whose words are cited in the press release.

According to him, the FAS ruling will be technically executed next week.

The sides are not voicing particulars of the deal.

Last May, RusAl said that it had reached agreement in principle for Alcoa to buy the Samara Metallurgical Works and the Belokalitvenskoe Metallurgical Production Association.

"The two rolling facilities become part of Alcoa and will be re-targeted to meet the demands of the Russian domestic market, as well as the clients in Europe, Asia and America", RusAl's statement read.

"This deal is part of RusAl's strategy aimed at the concentration of efforts to produce primary aluminium and alloys as the company's main business", RusAl general director Alexander Bulygin earlier said.

This purchase is part of the plan to increase the profitability of Alcoa business through the expansion of our global presence. Today we view with inspiration the chance given us to develop business in Russia, Elain Belda, president and chairman in the Alcoa board of directors, then said.

The Samara Metallurgical Works manufactures semifinished products of all kinds of aluminium alloys, including a wide range of rolled, pressed and cast products.

Situated in the Rostov region, the Belokalitvenskoe Metallurgical Production Association makes rolled, pressed (including pipes) and cast products.

RusAl accounts for 75 percent of Russia's and 10 percent of the world's primary aluminium.

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