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
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Mail Online takes a tour of Gatwick's modern EV charging station
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Former Chancellor Nadhim Zahawi to chair Very Group
- MARKET REPORT: FTSE falters despite UBS call to buy...
- How reliable are the most popular used cars? Here's how...
- Taxpayer stake in NatWest falls below 27% as Treasury...
- Cerillion boosted by $11.1m contract with provider of...
- UK Government sells another chunk of NatWest shares
- Anglo strikes out alone - but can it survive a bid...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- Diploma shares top FTSE 100 risers after firm raises...
- Phoenix Group finance chief to step down from insurer
- A MILLION more people have taken on mortgages they will...
- Used car marketplace Cazoo looking for buyers as it nears...
- Evri issues warning over huge rise in smishing scams -...
- US owner of Boots steps up efforts to find a buyer for...
- I repeatedly bail out my partner from his financial...
- BUSINESS LIVE: Nadhim Zahawi to chair The Very Group;...
- London's 'Mr Super Prime' to take centre stage in...