A&O wins rare Anglo-Russian mining deal

Allen & Overy (A&O) has won a rare instruction on a mining deal, advising Russian mining giant Mechel on its $1.498m (£750m) bid for London-based Oriel Resources.

Mechel turned to A&O in the firm's first major instruction for the company while chrome and nickel producer Oriel, which is listed on AIM, called on Norton Rose and corporate partner Nick Adams.

The A&O team was headed by M&A partner Richard Browne with input from associates Emma Barnett and Elvan Hussein, and partners Varun Gupta and Tony Humphrey in Moscow. The firm also advised Mechel on the banking facility for the acquisition.

Browne said A&O won the instruction through its Moscow office and partner Gupta. He added: "We are doing more and more in Moscow. The mineral resources sector will see a lot more activity, and more consolidation deals like this one."

Mechel, a client of A&O since listing on the New York stock exchange in 2004, is an integrated mining and metals group with three divisions: mining, steel production and power generation. The Oriel board has recommended shareholders accept a cash offer worth $2.20 (£1.10) a share, a premium of 13.7 per cent on its share price.

Linklaters advised lending banks Merrill Lynch, ABN Amro and RBS.