Seeking Alpha

Russian tycoon Prokhorov to buy into potash miner Uralkali

  • Russian billionaire Mikhail Prokhorov - owner of the Brooklyn Nets - has agreed to acquire a 21.75% stake in Uralkali (URALL), the world's biggest potash miner, from the company's main owner, Dagestani tycoon Suleyman Kerimov.
  • Kerimov and his partners own a third of Uralkali, while China Investment Corp, China's sovereign wealth fund, purchased a 12.5% holding in September.
  • Uralkali caused turmoil in the potash markets after it ended its joint venture with Belarusian state-owned miner Belaruskali in July. The JV, called Belarusian Potash Co, controlled around 40% of the global market and so had a major influences on prices.
  • Following the breakup, Belarus arrested Uralkali CEO Vladislav Baumgertner in August, since when he has been in jail or under house arrest. (Previous)
  • Related tickers: POT, MOS, AGU, SQM, IPI.
  • Related ETFs: MOO, CROP, PAGG, VEGI.
Comments (6)
  • Aikman
    , contributor
    Comments (140) | Send Message
     
    So what should we make of this? They might bring back the cartel?
    18 Nov 2013, 04:17 AM Reply Like
  • yestoeverything
    , contributor
    Comments (193) | Send Message
     
    Bought a little POT last week, when I first got word that this was in the offing. I think the cartel will be restored, and that the long term prospects look good. There are other issues facing the industry, but this is a rare triple. Cartel/Div/StableCountry, and the entry point is excellent in my neophyte opinion.
    20 Nov 2013, 07:25 AM Reply Like
  • Dan Manuel
    , contributor
    Comments (2) | Send Message
     
    Whether or not Prokhorov would seek to reform the BPC cartel is just one side of the coin. Whether or not the Belarusians would agree to it - and under which conditions, is an entirely different matter.

     

    The potash market at large would love to see this happen, and something tells me K&S's share price will go up quite a bit over the next few days. However lets not count our chickens before they hatch.
    18 Nov 2013, 06:18 AM Reply Like
  • Aikman
    , contributor
    Comments (140) | Send Message
     
    POT is up 2% premarket
    18 Nov 2013, 08:57 AM Reply Like
  • happyguy
    , contributor
    Comments (207) | Send Message
     
    This guy is rich and not sure if he would buy Uralkali if there is no hope that this company will generate profits. There should be improvement of relations with Belarus in my opionion but it may take some time
    18 Nov 2013, 10:32 PM Reply Like
  • worldbank
    , contributor
    Comments (167) | Send Message
     
    I think they cut a deal and get back to the "joint venture" in sales.
    Just too much money at stake to go it alone. I think all parties like $500 per metric ton, rather than fighting for $370 per...
    21 Nov 2013, 12:43 PM Reply Like
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