Russia considers merger of metals giants

The Kremlin is considering a plan to merge some of Russia’s largest metals companies into a conglomerate in which the government would take a substantial minority stake, in exchange for writing off some of the crushing debts of the tycoons who now control the companies, reports the WSJ. A combined metals company would have annual revenue of as much as $40bn and give Russia a player to rival global giants like BHP Billiton. If approved by the government and the companies, the plan would mark the first indication that the Kremlin is using the bailouts it is offering the heavily indebted oligarchs to retake stakes in their industrial assets.