Uralkali, Silvinit $1.4 Billion Merger Approved

- February 8th, 2011

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.

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.

click here to access the entire news

Leave a Reply