Polyus Gold, Polymetal Merger Not Imminent - Report

(REUTERS) -- A merger between Russian Presidential hopeful Mikhail Prokhorov's Polyus Gold and rival Polymetal is not imminent after recent talks between core shareholders broke down, sources close to both firms told Russia's Vedomosti.

The sources said the discussions were initiated by another Polyus shareholder, Suleiman Kerimov, but that the two sides could not come to an agreement.

Last month, media reports said the owners of the two firms were in talks over a merger, and Prokhorov had also said he was interested in a major deal once his company lists in London.

A source close to Polymetal also told Vedomosti that it was still too early to rule out a merger between the two miners in the future, without providing further details.

Polyus postponed plans to list its shares on London's FTSE 100 index last year after the Russian government declined to issue the necessary approvals.

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However, the company still expects to complete the placement in the first half of this year.

Should it do so, it will join Polymetal and Roman Abramovich's steelmaker Evraz which entered the FTSE 100 last year.