Vladimir Potanin and Alisher Usmanov, two Russian metals tycoons, said on Wednesday they had agreed on an asset tie-up that would open the way for the creation of a Russian metals and mining giant, and potentially the biggest three-way merger deal in Russian history.

The deal seizes the initiative from Oleg Deripaska’s United Company Rusal, which last month completed the purchase of a 25 per cent blocking stake in Norilsk Nickel, in a move which it had touted as the first step toward a full merger with the world’s biggest nickel producer.