Rusal-Sual Merger Good for ZALK.

Russia’s main aluminum producers, Rusal and Sual, announced plans to merge their assets to create world’s largest aluminum group. According to media reports the merger was blessed by the Kremlin. Eugene Cherviachenko: We believe both of the new group’s Ukrainian assets, Sual’s Zaporizhya Aluminum (ZALK: BUY) and Rusal’s Mykolayiv Alumina, will gain from the merger. Improved Kiev-Kremlin relations and the strengthening of Rusal’s and Sual’s positions in Russia could help the new group lobby discounted electricity tariffs, particularly for ZALK, which has suffered from increased electricity costs.