17 May 2007
Sydney, 17 May 2007: Clayton Utz[1] has had a key advisory role on the US$408 million acquisition by the world's largest nickel producer, Russian-based MMC Norilsk Nickel[2], of the global nickel business of OM Group, Inc[3].
Clayton Utz represented MMC Norilsk Nickel as Australian counsel on the transaction, with Energy & Resources partner Susan O'Rourke and Corporate partner Michael Parshall the firm's lead partners. Canadian firm Hogan & Hartson was lead counsel on the deal, which closed on 1 March.
MMC Norilsk Nickel is the world's largest producer of nickel and palladium, and a leading producer of platinum and copper.
The assets acquired from OM Group Inc. comprise a nickel refinery in Harjavalta, Finland, and nickel mines in Western Australia, as well as a 20% stake in MPI Nickel P/L. MPI Nickel operates the Black Swan and Silver Swan nickel mines in WA and is developing the Honeymoon Well nickel project, one of the world's largest undeveloped nickel sulphide deposits.
The acquisition is part of Norilsk Nickel's strategy to enhance its production capacity and build its international business, including in Australia.
Ms O'Rourke, whose global experience in energy & resources deals spans 25 years, said the transaction was an example of the increasing internationalisation of mining asset transactions, which required a co-ordinated approach to the provision of legal services.
"This acquisition of Australian mining assets shows the dominant trend of assets globalising in terms of their ownership, management and the interconnection of markets," said Ms O'Rourke. "It also illustrates the fact that Australian lawyers are definitely practising in a global marketplace. The challenge for Australian law firms is how they respond to and service clients in a global timeframe. At Clayton Utz, we meet this challenge by fielding tightly managed, client-focused teams with the commitment and capability to get the deal done."
Since completion of the transaction, MMC Norilsk Nickel has instructed Clayton Utz to act as Australian counsel on Norilsk's C$5.3bn (A$5.8bn) bid for LionOre Mining International Ltd, announced on 3 May.
LionOre is Australia's third largest nickel producer, and also has operations in Botswana and South Africa.
Notes for editors: [1]Clayton Utz is one of Australia's largest and most successful law firms, with more than 1900 staff across offices in Brisbane, Canberra, Darwin, Melbourne, Perth and Sydney.
[2]MMC Norilsk Nickel is the largest mining and metals company in Russia. It is the world’s largest producer of nickel and palladium and one of the world’s largest producers of platinum and copper.
[3]OM Group, Inc. is a vertically integrated international producer and marketer of value-added, metal-based specialty products and related materials.
