Russia antitrust body approves Uralkali-Silvinit merger

Source: ICIS News

2011/04/04

LONDON (ICIS)--Russia’s Federal Anti-monopoly Service (FAS) has approved the merger of potash giant Uralkali with its Russia-based competitor Silvinit, according to a statement released by Uralkali on Monday.

The deal was approved by shareholders in February but was halted by a temporary court injunction when Russian fertilizer producer Acron lodged a formal complaint earlier this year.

In the statement, Uralkali said it had satisfied all the conditions set by the FAS to ensure the merger does not hamper domestic competition.

The conditions include regulation of its sales, consistent pricing practices and maintenance of a government-approved corporate code of conduct. The merger’s completion is now expected by the end of the second quarter of 2011, Uralkali said.

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 information on potash, visit ICIS pricing fertilizers Please visit Will Beacham’s Look East for Chemicals blog