Consolidation in the agricultural sector has a win-win outcome, the chief executive of PhosAgro, the Russian agrichemicals giant, told CNBC on Tuesday.
"I believe in consolidation of business so for me it creates a clearer environment in terms of production and it's easier to analyse the supply and demand so it's very positive," Andrey Guryev told CNBC in Moscow.
His comments come amid several big mergers in the agricultural sector. Last week, German drugs and crop chemicals company Bayer finally persuaded U.S. seeds firm Monsanto to agree to a takeover with an improved offer of around $66 billion. The deal ended months of negotiations although competition authorities are expected to look closely at the purchase.
Meanwhile earlier this month, Canada's Agrium and Potash Corp of Saskatchewan said they would form a combined company in a deal that would create a fertilizer and farm retailing giant. The deal would create a company with proforma enterprise value of $36 billion but would also trigger U.S. regulatory scrutiny, Reuters reported.