The Russian iron ore and steel producer Evraz Group has announced its plans to combine Raspadskaya and the newly acquired Yuzkuzbassugol coal operations into a single company.
The terms and structure of the transaction are expected to be finalized in the second half of 2007.
Upon the completion of the transaction, Raspadskaya will own 100 percent of Yuzkuzbassugol, while Evraz will continue to holds its stake in Raspadskaya through Corber Enterprises Limited.
Commenting on the plans, Evraz's chairman and CEO Alexander Frolov stated, "Through this combination we will create a Russian coking coal leader and a top-three global coking coal producer distinguished by the best resource base, world-class management team, strong growth profile and significant export potential. The combined company will have Evraz's steel mills located in Siberia and the Urals as its main and largest customers. This combination will serve the best interests of both companies' shareholders."