On January 27, 2014, Russia's Federal Antimonopoly Service decided to grant the application of the Onexim group for the purchase of 27.76% of the shares in OJSC Uralkali, the regulatory body informed.
At the same time, the competition authority sent a request for information concerning the flow of Uralkali shares to the registrar in follow-up of the mass media reports of the already finalized transaction.
"Should the reports on completion of the transaction between the Onexim group and OJSC Uralkali without prior approval of the competition authority prove to be true, Russia's Federal Antimonopoly Service will bring an administrative offence action," Anna Mirochinenko, head of the Federal Antimonopoly Service's Department for Control over Chemical Industry and Agro-Industrial Complex, commented.
It will be recalled that in November 2013, Onexim Group arranged for the purchase of a 21.75% stake in OJSC Uralkali from Suleyman Kerimov Foundation's entities. The parties intend to complete the transaction "in the nearest future". The acquisition was allegedly not subject to regulatory approvals.
Onexim Group is one of the largest private investment funds in Russia, focusing on investments in metals and mining, financial services, media, real estate, innovative power and nanotechnology projects.
OJSC Uralkali (tax number: 5911029807) is an integrated company established by merging the assets of OJSC Uralkali and OJSC Silvinit (the merger was finalized on June 16, 2011). For the purpose of the merger, Uralkali acquired 1,565,151 common shares (about 20%) of Silvinit and took over Silvinit replacing the target company's common and preferred shares with its own common stock.
In 2013, Uralkali increased potassium production by 10% to 10 million tonnes.
IFRS net revenue of Uralkali for 9 months 2013 dropped by 27% to $2.047 billion from $2.79 billion the year before.