Russian giant Uralkali decides on London float
Russian fertiliser giant Uralkali has chosen London for a stock market float as the ink dries on its £15bn tie-up with Silvinit.
Demand: Potash is mainly used as a soil fertiliser to nourish the world's crops
A merger creating one of the world's top potash firms is due to complete with days and Uralkali has earmarked London for the next stage of its development.
Chief executive Vladislav Baumgertner said: 'Uralkali is becoming a global leader in the potash market, so a full London listing is a good option for the future to give us more fresh capital. We are very keen to enlarge.'
No bank advisers have yet been appointed, but Uralkali sees the Square Mile as the ideal springboard for its transformation into a globally recognised giant.
Uralkali is expected to launch a bid for Belaruskali - the world's third largest producer - within months. Baumgertner conceded the firm was an 'interesting acquisition target', although he said no talks were yet taking place.
That deal would catapult the firm above Canada's PotashCorp - the subject of a failed £24bn bid from BHP Billiton last year - as the industry leader.
Baumgertner said Uralkali's appetite for deals was fuelled by the conviction that global population growth will be accompanied by greater demand for fertilisers.
'We suppose that in the next five to seven years, the potash market will grow immensely,' he said. 'We forecast that in 2011 the world potash market will reach 57 to 60m tonnes per annum and will grow by 3% per year over the next decade.'
The combination of Uralkali and Silvinit - both controlled by billionaire Suleiman Kerimov - will see the firms reach combined potash output of 8m tonnes per year.
The firm has recruited veteran non-executive directors Sir Robert Margetts and Paul Ostling.
STEP 1 Extracted by mining. Canada and Russia have the largest deposits
STEP 2 Nutrients are extracted at above-ground processing plants
STEP 3 Mainly used as a soil fertiliser to nourish the world's crops
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