Israel Chemicals boosted by Uralkali cartel talk

Uralkali's two largest shareholders support the renewal of collaboration with Belarus.

The two largest shareholders in potash company Uralkali JSC (LSE: URKA) support the renewal of collaboration with Belarus, which opens the door to the possibility of ending the potash wars, which broke up the cartel last year and caused potash prices and fertilizer stocks worldwide to plummet. Israel Chemicals Ltd. (TASE: ICL) share price rose 3.84% by early afternoon to NIS 30.52, with high turnover on the Tel Aviv Stock Exchange (TASE).

Onexim CEO Dmitry Razumov, which holds 21.75% of Uralkali, the largest potash producer in the world, told Reuters that the renewal of activity with Belaruskali will benefit both sides. Uralchem, which holds 20% or Uralkali, told The Financial Times that the company agrees with Razumov on the matter.

The two companies, controlled by billionaire Dmitry Mazepin, purchased their holdings in Uralkali last year, at the height of the conflict between Russia and Belarus following Uralkalis departure from the potash cartel in July, which caused shockwaves throughout the global potash market, and caused potash shares to plummet.

Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2014

Copyright of Globes Publisher Itonut (1983) Ltd. 2014

 
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