Two Russia fertiliser groups have combined to create the world’s largest potash producer in a $23.9bn merger that underlines the growing value of an industry fuelled by rising food consumption in countries like China and India.

The directors ofUralKali, controlled by Kremlin-linked tycoon Suleiman Kerimov, voted on Monday to approve the company’s merger with Silvinit, its smaller domestic rival.

The deal, which has been months in the making, comes weeks after miner BHP Billiton abandoned a $40bn hostile takeover bid for PotashCorp, the Canadian company that previously was the world’s leading producer. Vladimir Putin, Russia’s prime minister, signalled his backing for the deal last week with a spokesman confirming that he had been informed of the potential tie-up.