Russia's Prime Minister Vladimir Putin has been informed of a merger between the country's two major producers of fertiliser component potash, his spokesman Dmitry Peskov told Reuters on Wednesday.
"He is informed about the ongoing merger between Uralkali and Silvinit," Peskov said by telephone.
Peskov's comments effectively confirm long-standing speculation that the two producers may merge.
No major merger or acquisition, particularly involving natural resources, goes ahead in Russia without the knowledge of Russia's powerful prime minister.
A spokesman for Uralkali could not immediately be reached for comment.
Uralkali and Silvinit have been widely tipped as merger partners since the Russian billionaire Suleiman Kerimov and associates bought controlling stakes in both companies during the summer.
Together they produce around 11 million tonnes of potash every year -- second in the world behind Canada's Potash Corp.
The potash industry took centre stage on global markets earlier in the year when giant Australian miner BHP Billiton launched a hostile $39 billion bid for Potash Corp -- a move eventually repelled following opposition by Canadian authorities.
Privately held Russian fertiliser minnow Phosagro has also said it is interested in a stake in Potash Corp, but a firm offer is not expected imminently.
Potash prices have soared this year due to its importance in growing food for an expanding world population.
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