US based The Mosaic Company acquires fertilizer business of Brazilian Mining Company-Vale in a deal worth $2.5 billion. Half of the $2.5 billion will be paid in cash, while Mosaic will issue roughly 42.3 million shares of common stock for payment of other half of deal.
The deal with Vale include: Vale’s phosphate and potash assets in Brazil, excluding phosphate assets in Cubatão. However, the Kronau potash project in Canada and its shareholding position in Bayóvar, Peru are included in the deal. Whether Rio Colorado potash project will be included in the deal is not clear.
The deal is expected to be complete by late 2017 after approval from CADE (Brazil’s antitrust regulator).
Vale is a Brazilian multinational corporation engaged in metals and mining. Vale is the largest producer of iron ore and nickel in the world. Vale also produces manganese, ferroalloys, ferroalloys, copper, bauxite, potash, kaolin, and cobalt. The company also currently operates nine hydro electricity plants.
The Brazilian Government owns 12 golden shares that give it control over certain actions including a liquidation or change in principal office.
Vale was founded in 1942 as Companhia Vale do Rio Doce (widely known as CVRD prior to 2007) in Itabira, Minas Gerais, Brazil by the Brazilian Federal Government.
About The Mosaic Company
The Mosaic Company is a Fortune 500 company based in Plymouth, Minnesota, a Minneapolis suburb. Mosaic mines two key crop nutrients—phosphate and potash—and produces specialty products MicroEssentials, K-Mag and Pegasus. It is the largest U.S. producer of potash and phosphate fertilizer.
Its customer base includes wholesalers, retail dealers and individual growers in more than 40 countries. Headquartered in Plymouth, Minnesota, Mosaic employs approximately 9,000 people in eight countries.
Mosaic was founded in 2004 after a merger between IMC Global, a fertilizer company formed in 1909, and Cargill’s crop nutrition division.