Uralkali Still Sees Belaruskali As Takeover Target

Russian potash miner Uralkali sees rival producer Belaruskali as an attractive acquisition target, although a deal is unlikely soon, Uralkali CEO Vladislav Baumgertner said on Tuesday.

"Belaruskali is attractive as an M&A target ... It's unlikely this will happen in the short term," Baumgertner told a Renaissance Capital investor conference, adding that no talks are now happening.

Baumgarter also said the company would refinance around $1 billion in debt for daughter company Silvinit this autumn.

The companies, both owned by billionaire tycoon Suleiman Kerimov and associates, merged in a $23.9 billion deal earlier this year to form Russia's No. 1 potash producer.

Prospects for Uralkali to buy the Belarus potash group dimmed last week when Uralkali shareholder Alexander Nesis said a takeover was "complicated" and unlikely to take place.

Uralkali is considered to be the most likely buyer of Belaruskali if Belarus is forced to sell its most prized asset to ease its currency and economic crisis.

Baumgertner also said he expected potash prices to rise in the near future as the market is very strong and major miners are operating at full capacity.
"We cannot exclude that prices will reach $600 per ton by the end of the year," he said.