Russian fertilizer maker Uralkali settles US antitrust case

21 September 2012 16:05  [Source: ICIS news]

LONDON (ICIS)--Russian potash fertilizer producer Uralkali has signed settlement agreements to exit the US antitrust case filed against it by potash buyers, the company said on Friday.

The agreements were signed with direct and indirect plaintiffs for $10m (€7.7m) and $2.75m, respectively, and will come into effect after final approval of the US district court in Illinois.

“We believe that these settlements are in the best interest of the company to avoid the burdens, costs and distraction of protracted litigation,” the company said in a statement.

In September 2008, potash consumers in the US, including Minn-Chem Inc and Kraft Chemical Co, sued seven producers claiming violations of the US Foreign Trade Antitrust Improvements Act.

The buyers alleged price fixing violations against Uralkali, its marketing arm BPC and Silvinit, which was acquired by Uralkali in 2010. Belaruskali, Potash Corporation of Saskatchewan (PotashCorp), Mosaic and Agrium were the other potash producers named in the antitrust suit.

The plaintiffs had alleged that the seven companies controlled the world’s potash market during 2003-2008, and co-ordinated cuts in production to ensure an increase in potash prices.

Under the settlement agreements, Uralkali, Silvinit, BPC and the company’s trading subsidiaries, IPC and Uralkali Trading SA, would be released from any liability in connection with the plaintiffs' claims.

($1 = €0.77)

By: Deepika Thapliyal
+44 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly