Uralkali, Silvinit $1.4 Billion Merger Approved

Shareholders of Russian fertilizer producers OAO Uralkali and Silvinit have approved the companies’ $1.4 billion merger, to create the world’s second largest potash producer after Potash Corp. of Saskatchewan.

The market news is quoted as saying:

The deal comes after the Canadian government blocked BHP Billiton Ltd.’s $39 billion bid for Potash Corp. in November. Profits at fertilizer producers have been rising at a time of increasing anxiety about global grain inventories and a surge in prices for such crops as wheat, corn and soybeans.

According to the transaction terms, Uralkali will buy about 20% in Silvinit for $1.4 billion and will purchase the rest of the company through an issuance of new shares. The merger is expected to be completed in May, subject to regulatory approvals.

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