10 January 2005
Latest news on Alcoa Case by Finmarket newswire

Alcoa received a permit for acquisition of aluminum plants in Samara and Rostov region

On December 30, 2004, the Federal Antimonopoly Service (FAS) allowed the request of Alcoa for a permit for acquisition of controlling stakes in Samara metal plant and Belokalitvinskoe metallurgical production association (Rostov Region).

Bearing in mind that the plants acquired by Alcoa have dominating positions on the Russian market according to some kinds of aluminum products and also produce defense products, the FAS issued instructions for the buyer aimed at provision of competition and protection of economic interests of Russia. Approval of the deal by the FAS was also preceded by signing of special agreements with Alcoa regulating the problems of employment at the plants, outlining of pricing policy of the new owners and ensuring supplies of products of the plants under long-term state orders.

Instructions of the FAS and agreements on activities of Alcoa on the Russian market were prepared by the FAS in co-operation with the Economic Development and Trade Ministry, federal Industrial Agency and with participation of the lawyer bureau Yegorov, Puginsky, Afanasyev and partners.

Deputy head of the FAS Andrei Tsyganov said, "Acquisition of the Belokalitvinsky and Samara plants by Alcoa was preceded by creation of a special mechanism for use of the norms of the antimonopoly law for protection of national security interests and defense capability of the state. We are going to develop such practices in the future."