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Mosaic to buy CF Industries phosphate fertilizer business for $1.2 billion

10.28.2013  | 

The CF assets currently produce about 1.8 million tpy of phosphate fertilizer. The transaction will give Mosaic the 22,000-acre (8,903- hectare) South Pasture phosphate mine and beneficiation plant, a factory in Plant City, and an ammonia terminal and finished- product warehouse facilities in Tampa.

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By SIMON CASEY
Bloomberg

Mosaic, the world’s largest phosphate-fertilizer producer, has agreed to acquire a mine and other assets from CF Industries Inc. for $1.2 billion to boost its output of the crop nutrient in Florida.

Mosaic will also pay $200 million to fund CF’s asset retirement obligation escrow, the US-based company said in a statement Monday.

Mosaic said the deal will add about 30 cents/share to 2015 earnings, excluding any debt financing costs and increase in the number of the company’s shares.

The transaction will give Mosaic the 22,000-acre (8,903- hectare) South Pasture phosphate mine and beneficiation plant, a factory in Plant City, and an ammonia terminal and finished- product warehouse facilities in Tampa.

Mosaic said it will save about $500 million because the deal means it will no longer have to build a processing plant for its new Ona mine, which like CF’s South Pasture mine is located in Florida’s Hardee County.

The CF assets currently produce about 1.8 million tpy of phosphate fertilizer, while Mosaic produces 8.2 million tons, according to the statement.



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