Reuters reported that United Company RUSAL and Norilsk Nickel should pool their assets to take on global giants like BHP Billiton and seek takeover targets around the world.

Mr Viktor Vekselberg Russian billionaire who is also a major shareholder in the aluminum powerhouse said "The issue of uniting RUSAL and Norilsk Nickel has been discussed for a long time in various forms and configurations. For the Russian economy and for the world economy, the appearance of a new player which could compete with leaders like BHP Billiton is very important."

Mr Vekselberg whose Renova Group owns stakes in UC RUSAL and BP's Russian oil venture TNK-BP said "I think that, having made this step, the shareholders will support further integration of these assets,"

He said Rusal which delayed a long-planned initial public offering last year because of the global credit crunch will make the placement by the end of next year and use its public status as a launch pad, paying for new acquisitions with shares.

He added that further integration with Norilsk Nickel was not a precondition for the public offering. But the combination would have more financial muscle for ambitious takeover attempts.