Russian potash companies to merge and create a giant?

The winds of mining consolidation are blowing in Russia: investors related to the owners of potash miner Uralkali bought stakes in rival Silvinit, with the move being understood as a possible future merge between the companies. A deal would create a company with about 45% of the potash market with partner Belaruskali. Russian newspapers say foreign firms such as Rio Tinto could also participate, as minority stakeholders of the new company.

Silvinit said on Sunday that two offshore firms had bought 44% of its shares, and the papers linked these two firms to businessmen close to billionaire Suleiman Kerimov, who bought 53.2% of Uralkali together with two partners in June.