«OJSC «MMC «Norilsk Nickel»

A. V. Kolmakov, Main Specialist, (495) 783-92-42

The influence of growing globalization on the world non-ferrous metallurgy and in particular on one of its branches-nickel industry is considered. The systematic increase in market capitalization of transnational nickel producing companies through mergers and acquisitions magnifies their competitive ability (production cost reduction, optimization of logistic operations, access to effective mining and production technologies and strengthens their financial standings. The specific character of mergers and acquisitions in nickel industry contains high risks of investments that are based on the ore bodies characteristics (each deposit has unique geological structure) and complexity of mining and metallurgical technologies. The scattered locations of mining, flotation and refining capacities given with high capital expenditures on the grass-root project development level are operative for calculating synergy after the deal is closed. Before the global financial crisis high margins from nickel sales provided nickel producers with a stable cash flow, that made possible to cover growing production costs and raised proportion of cheap debt financing. The breakdown of worlds’ nickel price forced producing companies to cut production, marketing and logistics costs effectively and to show more accuracy in forthcoming mergers and acquisitions.

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