Friday, August 27, 2010

FAS To Consider Possible Merger Between Russia's Two Largest Potash Producers

The FAS announced on Thursday that it would consider a possible merger between Russia’s two largest potash producers, Uralkali and Silvinit.  Although neither company has yet filed necessary merger paperwork with the FAS, the companies have publicly discussed a possible merger or alternative joint business operation.  The FAS noted that as any merger would create a national monopoly, it would not likely be approved without restrictions.  One alternative discussed has been foreign acquisition of between a 10% and 15% stake in Uralkali, a move that would require approval of the government commission on foreign investment chaired by Prime Minister Putin.

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