Fertiliser deal continues consolidation trend and expands Mosaic’s presence in Brazil
Fertiliser manufacturer Mosaic has agreed to buy Vale Fertilizantes from mining company Vale for $2.5 billion (£2 billion) in cash and shares.
Brazilian-headquartered Vale will receive $1.25bn in cash and an 11% shareholding in Mosaic. It will also gain the right to nominate two individuals to Mosaic’s board of directors.
The move will increase Mosaic’s presence in Brazil, acquiring five phosphate rock mines, four chemical and fertiliser manufacturing sites and one potash facility. It will also assume Vale’s stakes in phosphate and potash projects in Peru and Canada. Mosaic also has the option to take on Vale’s potash project in Rio Colorado, Argentina.
The transaction, which is subject to regulatory approval, continues a trend of consolidation in agrochemicals. Mosaic will add around 8000 new employees – an increase of 73% to its global workforce.