United Co Rusal, the world's largest aluminum producer, will acquire a 33 percent stake in a trading unit of China North Industries Corp and form a joint venture to expand business in China.
In a filing to the Hong Kong stock exchange yesterday, Rusal said it plans to buy the stake in Shenzhen North Investments Corp, which sells primary aluminum in China and southeast Asia.
The deal value was not revealed.
The Russian company, controlled by billionaire Oleg Deripaska, said the acquisition will enhance its products in China. It already sells aluminum to China North Industries, the nation's main defense company.
Rusal also said it will form a joint venture with China North Industries to produce and sell aluminum alloys. Rusal said it will hold at least 51 percent in the venture.
Rusal, which raised US$2.24 billion in a Hong Kong share sale early this year, sees the Asian market one of its top priorities. It aims to expand Asia sales to 30 percent of its total this year, from 20 percent in 2009.
"The geographical proximity of Rusal's smelters to China enables us to offer the most favorable conditions to our partners in Asia," Deripaska said in a statement.