Russian Potash Firms Agree Merger

Shareholders in Russian potash companies Silvinit and Uralkali have voted to merge, Russia's Vedomosti newspaper reported on Monday, citing two sources.

Shareholders from the two companies met on Friday to vote on the deal, but the firms have not announced the result.

A merger of Silvinit and Uralkali to create a Russian potash mining giant was engineered by billionaire tycoon Suleiman Kerimov, who bought controlling stakes in both companies alongside associates last summer.

Potash, a key ingredient in fertiliser, has emerged as a valuable commodity in a world struggling to feed a growing population while battling droughts and floods.

Kerimov, who serves in Russia's upper house of parliament, would be left with 16 percent of the combined group once the deal is completed.

A Russian court last week denied Silvinit shareholder Acron its demand for an injunction that would hold up a merger.

Russian potash miner Uralkali today said that Silvinit shareholders had voted to approve their merger, which will create the world's second largest producer of the soil nutrient.

Uralkali said 90.9 percent of the votes cast at a meeting of Silvinit shareholders on Friday supported the merger.
"We are excited about the creation of a leader in the global potash sector and the opportunities that will arise in this highly dynamic industry for the combined group," Uralkali chief executive Pavel Grachev said in a statement.

It is expected to be complete in May, following regulatory approvals.