The Canadian Press - ONLINE EDITION
Mosaic to buy phosphate business from CF Industries in US$1.4-billion deal
PLYMOUTH, Minn. - There's a major deal involving one of the partners in Canpotex, a North American potash exporting group that includes Canada's three largest producers of the fertilizer ingredient.
Mosaic Co. (NYSE:MOS), which has major potash operations in Saskatchewan, says it has a definitive agreement to pay US$1.4 billion to acquire a Florida-based phosphate operation from CF Industries Inc.
The Minnesota-based company says it will pay $1.2 billion cash to acquire the South Pasture mine and related assets plus $200 million to fund CF's asset retirement obligation.
Phosphate, potash and nitrogen are the main components of agricultural fertilizer, which is used to promote crop growth.
Mosaic, which has been primarily a potash producer, said the mining, processing and terminal assets that it will acquire will complement a phosphate operation it's building in Florida.
It said the existing infrastructure at South Pasture would result in Mosaic saving approximately US$500 million by not having to construct a $1 billion processing plant. Mosaic would instead invest $500 million to develop phosphate rock reserves and improve existing mines.
CF Industries (NYSE:CF) successfully fended off a hostile takeover attempt several years ago by Calgary-based Agrium Inc. (TSX:AGU), another member of the Canpotex potash marketing group.
(1 of 7 articles for this week)12/11/2013 11:28 PM 0