China extends M&A oversight with conditions on potash merger

BEIJING Thu Jun 2, 2011 6:40am EDT

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BEIJING (Reuters) - China's Ministry of Commerce approved the merger of two Russian potash producers on Thursday, but imposed conditions on pricing and contractual terms that the company formed by the union of Silvinit SILV.MM and Uralkali (URKA.MM) must observe when supplying the Chinese market.

The pricing and supply conditions were the first major terms imposed on a merger of two foreign companies, showing Beijing's determination to use its new anti-monopoly law to have a say in foreign deals that could affect the supply of crucial materials to China.

(Reporting by Tom Miles; Editing by Chris Lewis)

(This story was corrected to show that these are the first conditions on pricing and supply for a foreign merger; China has previously put conditions on other foreign M&A deals)

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