Russia potash producers Uralkali, Silvinit complete merger

16 June 2011 17:36  [Source: ICIS news]

MOSCOW (ICIS)--Russia's major potash producers Uralkali and Silvinit have finalised their merger, Uralkali said on Thursday.

The transaction, which is expected to create the world's leading potash producer, was previously due to be completed in May.

Uralkali and Silvinit shareholders first indicated plans to merge in December 2010. The Russian Federal Anti-Monoply Service (FAS) approved the merger but this was conditional on the new entity accepting direct government regulation of domestic potash prices.

Uralkali and Silvinit are based at Berezniki in the Perm region of the Urals. In 2010, Uralkali produced 5.1m tonnes of potash while Silvinit's potash production amounted to 5.2m tonnes.

In a statement released on 1 April, Uralkali’s CEO said the merger and proposed expansion initiatives between Uralkali and Silvinit would boost the company’s production capacity to 13m tonnes by 2012.

The increased capacity has the potential to rival that of Belarusian Potash Co and Canada-based PotashCorp.

Russia and Belarus hold 30% of global potash production capacity.

For more on potash visit ICIS pricing fertilizers

By: Sergei Blagov
+44 20 8652 3214

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