A Russian arbitration court has removed the last obstacle to a $24 billion merger between fertilizer producers Uralkali and Silvinit to create the world's second largest potash maker, a court official said on Wednesday.
The court has unblocked Uralkali's 600 million ruble share issue to be swapped for Silvinit's ordinary and preferred stock as part of the merger, the official told RIA Novosti. In the merger's first stage, Uralkali acquired 20% of Silvinit for $1.4 billion.
In February, the two companies agreed to merge but the deal was put on ice after a suit from Akron, a shareholder in Silvinit, which said the merger was skewed in favor of Uralkali. The court suspended the share issue and termination of Silvinit pending investigation.
Uralkali had said it expected the deal to be completed before the end of the second quarter despite the injunction.
Last week Russia's Federal Antimonopoly Service approved the merger after Uralkali fulfilled competition requirements.
MOSCOW, April 13 (RIA Novosti)
