Mosaic completes acquisition of CF Industries' Phosphate Business

The Mosaic Company has completed its acquisition of the phosphate business of CF Industries Inc for $1.2 billion in cash plus $200 million to fund the company's asset retirement obligation escrow. The deal was first announced in October last year.
 
Mosaic has acquired a 25,000-acre phosphate mine and beneficiation plant, a phosphate manufacturing facility and an ammonia terminal and finished product warehouse facilities in the Tampa area. The facilities currently produce approximately 1.8 million tonnes of phosphate fertiliser per year, which will bring Mosaic's annual phosphates capacity to over 11 million tonnes.
 
Mosaic funded the acquisition with cash, a portion of which Mosaic plans to replace with pre-payable intermediate term debt financing. The company intends to repay this debt financing as it generates excess free cash flows.
 
“This acquisition provides opportunities for enhanced operating efficiencies, lower production costs and reduced capital investment - creating value for our shareholders, customers and employees. The addition of these new phosphate assets further solidifies Mosaic's position among the largest, most efficient and lowest cost phosphate producers in the world,” said James T Prokopanko, President and Chief Executive Officer, Mosaic.
 
The acquisition is additive to Mosaic's existing Florida operations, and complements the company's plans to mine phosphate rock reserves in Hardee and Desoto counties and extensions of the existing Wingate mine. The former CF mine's proximity to Mosaic's planned Ona mine creates substantial opportunities for operational synergies.