Uralkali OAO, the world’s second-largest producer of potash fertilizer, is looking to buy potash assets as well as a distribution network for its products, its chief executive said in an interview.
“We would like to implement M&A in the potash sector, and we’re still looking for potash assets,” CEO Vladislav Baumgertner said. “Though there are not too many opportunities.”
Potash is one of the most-important nutrients applied to crops. While demand slipped this year due in part to the U.S. drought and a cut in a key Indian government subsidy, it is expected to be brisk next year as high prices for corn and other agricultural commodities lead to more plantings.
Uralkali, formed last year in a merger with fellow Russian potash producer Silvinit, primarily produces in Russia’s Perm district, but it is looking around the world for potash assets, Baumgertner said.
The Russian company is also interested in directly overseeing shipment of its fertilizer rather than hiring another company to do so.
Read more…