IAN potash producer Uralkali yesterday said that Chengdong Investment Corporation – the Chinese sovereign wealth fund – has acquired a 12.5 per cent stake in the company.
CIC is now the second largest shareholder in the firm, after Russian oligarch Suleyman Kerimov who owns a 21.75 per cent stake.
Uralkali said CIC had received the stake in a bond exchange deal with Wadge Holdings, which belongs to three shareholders including Kerimov.
China imports around 6m tonnes of potash a year, equating to over 10 per cent of global demand, so a stake in Uralkali should help secure stable supplies. It should also facilitate smoother potash trading between the two countries.
Uralkali’s shares and global depositary receipts (GDRs) are listed in Moscow and London respectively.