"Rainy day", said that in order to achieve long-term objective must be the first one, based on work efforts. Today, the global M & K Enterprises passion, the profound meaning behind it is the future of food, food prices ahead of concern.
December 21, 2010, the financial giant sulaimankeli Karimov control Russia's largest potash producer Potash Corporation Ural (U ral K ali) announced that a former competitor with the native S ilvinit merger agreement. The former will invest about 14 billion U.S. dollars, from the acquisition of existing property rights held by the latter at about 20% of common stock, while the latter through the issuance of new shares in exchange for the remaining common and preferred stock. According to Bloomberg calculations, the total price of the stock to pay 6.8 billion U.S. dollars, all of the purchase price as high as 82 billion dollars.
Terms of market capitalization, Urals, Russia's largest potash fertilizer producers, and S ilvinit is the world's third largest potash supplier. The two added together, can account for about 20% of the global potash market share.
This program was the merger by shareholders, the merger will be completed the end of the second quarter of 2011. By then, the combined new company will be second only to Canada, Potash Corporation of Saskatchewan, the world's second largest potash producer.
 A month ago, Potash Corporation of Saskatchewan, the Australian mining company had just emerged from BHP Billiton's hostile takeover. That pile trade negotiations lasted about 100 days, BHP Billiton's offer, although as much as 39.6 billion, but the end result of the opposition of the local government of Canada was forced to give up. As already has 20% of global potash production capacity of the world's largest potash producer, Potash Corporation of Saskatchewan has been no lack of suitors, three major international mining giants - BHP Billiton, Rio Tinto, CVRD, had revealed through its acquisition of interest.
There is no doubt that capital chasing potash industry is becoming a hot spot. The analysts believe that the growing "potash dispute" behind the nature of the problem is food.
K is to increase corn, soybean and other crop production is one key fertilizers. As the world population increases, arable land area decreased, and the demand for biofuels and food production increased worldwide demand for food began to soar. No more new development in the case of cultivated land and improve the yield per mu in the short term an effective way to increase global food. This results in potash prices continue to rise. The food crisis in 2007-2008, the potash prices briefly soared to $ 150 per ton from 1,000 U.S. dollars per ton. While the financial crisis, potash prices plummet, but then again the rebound.
Recently, due to various disasters worldwide, resulting in poor harvests in major grain-producing areas, agricultural prices, so the "invisible hand", driven by emerging markets worldwide, especially in the farming area of farmers started to expand the intention of prolific earn. With substantial global demand for food increases, the value of potash industry is more prominent.
"I certainly think that prices will rise in 2011. (K) prices did not fall flat or even possible." Ural CEO Pavel K Graham Qiefu these words showed that the potash in 2011 not only the prospects for demand and price "quite optimistic", Ural motivation is the acquisition of K based on the basis of this logic.
Currently, there are two global potash market, marketing alliances: Canpotex and BPC. Their form and function similar to the Petroleum Exporting Countries (OPEC): control of production and demand of potash, in consultation with the importing countries, the annual contract to maintain the supply-demand balance and prices. Potash Corporation of Saskatchewan, Canada, Potash Corporation and Ural are the two core members of the organization. Today, Silvinit was and Ruwulaer K, the two organizations will further enhance the ability to control the global potash market.
China is the world's leading importer of potash. At present, China's proven reserves of potash only 1% of the world, every year about 50% dependent on imports of potash demand. CICC analysis: K and S ilvinit Ural merger will enhance the monopoly supplier of international potash concentration, this will weaken to some extent, including China's potash fertilizer importer bargaining negotiations.
In fact, trying to buy BHP Billiton Potash Corporation of Saskatchewan, Canada during the period, BHP Billiton CEO, Reese has said publicly that its goal is to acquire "for the Chinese and Indian markets." (Romans sound)