10 Aug 2010 11:09

PhosAgro suggests merger with potash miner Silvinit

MOSCOW. Aug 10 (Interfax) - The PhosAgro holding has suggested merging with potash miner Silvinit , fertilizer market sources told Interfax.

One of the sources said PhosAgro had written to the government at the beginning of July and that the Industry and Trade Ministry had already considered the initiative, but had not yet reached any decisions.

The market thinks PhosAgro might be looking to put up resistance to a potential merger between Silvinit and Uralkali which, like Silvinit, is based in the Perm territory. The thinking is that creating a potash monopoly would make life hard for compound fertilizer producers, market participants say.

But the market is still inclined to believe that firms controlled by Suleiman Kerimov, which owns a blocking stake in Uralkali, will acquire control of Silvinit.