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In October 2016 Russian business newspaper "Vedomosti" reported (link in Russian) (translation) that Uralkali approached Belaruskali with offers of cooperation several times but Belaruskali was not interested. This time, Uralkali's offer will be strengthened (link in Russian) (translation) by the presence of Sberbank's CEO German Gref during negotiations. Mr. Gref increases the political weight of the delegation and makes a successful reunion a bit more likely.
There are two main questions in this story.
The first one is whether Uralkali and Belaruskali will be able to reach a consensus and restart cooperation. It's anybody's guess at this point but your author is cautiously optimistic. Both companies had the time to see that the strategy to increase market share did not work. Frankly, for Uralkali the market share game was over with the accident at Solikamsk-2 which made rapid production expansion plans impossible.
The second question is even more important - will the deal help the potash market? Much damage has already been done. I believe that we've seen the bottom for potash prices and recent quarterly reports of potash producers confirm that a cautious uptrend may already be in place. However, the industry has big reserves to increase production, so strict discipline among main players will be necessary to improve the situation with pricing.
seekingalpha.com/article/4080802-potash-upside-come
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44 | 69.132 | K+S wird unterschätzt | Salim R. | freidenker007 | 03.05.24 13:38 | |
2 | +++Morgenbericht mit Terminen+Analysten 25.04.07++ | eposter | timtom1011 | 25.03.24 09:43 | ||
2 | 7 | Neuer an Bord! | Brainwash | DaggyB | 27.04.23 15:11 | |
1 | Tippspiel EPS Q1 2022 | Wasserbüffel | Wasserbüffel | 09.05.22 09:56 | ||
3 | ++Morgenbericht mit Terminen+Analysten 27.04.07++ | eposter | Barracuda7 | 29.01.22 11:22 |