The Nigerian government struck an out-of-court settlement with United Co. Rusal Plc over the latter's 2007 acquisition of the idled Aluminium Smelter Co. of Nigeria Ltd., or Alscon, and its namesake Alscon smelter, Bloomberg News reported Feb. 1, citing the country's minister of Mines and Steel Development Kayode Fayemi.
As part of the settlement, Alscon would restart operations in six months, with the government now holding a 20% interest in the smelter and Rusal owning the remainder. However, a Rusal spokesperson refuted the numbers in the report, saying the company retained an 85% stake, with Nigeria holding the remaining 15%.
The deal was struck following a dispute lodged by BFI Group Corp., which launched a competing US$410 million bid for the operations in 2004.
The bid was eventually disqualified by the country's Bureau of Public Enterprises, and BFI then filed a lawsuit with a Nigerian court in 2013 to recover damages resulting from losing out on the acquisition.
Separately, Rusal won a 2014 lawsuit at the London Court of International Arbitration against the Federal Government of Nigeria and three other Nigerian state entities, legalizing the sale as "valid, binding, and in full force and effect."
