Moscow-The Federal Antimonopoly Service (FAS) of Russia has approved the proposed combination of Uralkali and Silvinit. As a prerequisite to the approval, FAS has issued to Uralkali a set of conditions aimed at maintaining competition in the domestic market. The company will have to regulate its potash sales across various consumer categories in Russia (including agricultural producers, compound fertilizer manufacturers, and trade customers). It will also need to impose consistent pricing practices applicable to each consumer group, as well as other practices to enable potash shipments to domestic customers. According to another condition of the FAS, Uralkali has to develop and sign off on the Corporate Code of Conduct to be able to meet its unilateral commitment concerning the proposed deal. Uralkali says the deal is still expected to be completed at the end of the second quarter of 2011, despite a partial injunction (GM March 28, p. 14) in a case brought by Silvinit shareholders seeking to scuttle the merger. A hearing on that matter is slated for April 12. “Our success in obtaining the FAS approval for the combination of Uralkali and Silvinit is the most crucial stage of the deal,” said Vladislav Baumgertner, Uralkali CEO. “The FAS approval means that the Service was satisfied with [the] domestic market support package developed by Uralkali. Uralkali is committed to the progress of the domestic MOP market. The goal of the package is to meet the domestic customer demand and support national agriculture.”
Transparency Across the Fertilizer Value-Chain