💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-Russia's PM informed about potash merger-spokesman

Published 12/15/2010, 12:42 PM
Updated 12/15/2010, 12:44 PM

* Vladimir Putin's spokesman says PM aware of situation

* Uralkali, Silvinit merger talks ongoing

(Adds detail, background)

MOSCOW, Dec 15 (Reuters) - Russia's Prime Minister Vladimir Putin has been informed of a merger between the country's two major producers of fertiliser component potash, his spokesman Dmitry Peskov told Reuters on Wednesday.

"He is informed about the ongoing merger between Uralkali and Silvinit," Peskov said by telephone.

Peskov's comments effectively confirm long-standing speculation that the two producers may merge.

No major merger or acquisition, particularly involving natural resources, goes ahead in Russia without the knowledge of Russia's powerful prime minister.

A spokesman for Uralkali could not immediately be reached for comment.

Uralkali and Silvinit have been widely tipped as merger partners since the Russian billionaire Suleiman Kerimov and associates bought controlling stakes in both companies during the summer.

Together they produce around 11 million tonnes of potash every year -- second in the world behind Canada's Potash Corp.

The potash industry took centre stage on global markets earlier in the year when giant Australian miner BHP Billiton launched a hostile $39 billion bid for Potash Corp -- a move eventually repelled following opposition by Canadian authorities.

Privately held Russian fertiliser minnow Phosagro has also said it is interested in a stake in Potash Corp, but a firm offer is not expected imminently.

Potash prices have soared this year due to its importance in growing food for an expanding world population. (Reporting by Gleb Bryanski; writing by Melissa Akin and John Bowker; Editing by Mike Nesbit)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.