In a deal marking Mosaic’s second big deal this year, Minnesota-based Mosaic Co. has announced it will buy CF Industry Holding’s phosphate business in Florida for $1.2 billion in cash. The deal is a strategic move for both companies as Mosaic is looking to increase its phosphate fertilizer business and CF has stated it is looking to focus on its nitrogen fertilizer products. Mosaic, the world’s biggest producer of finished phosphate products, will acquire CF’s South Pasture phosphate mine, plant, manufacturing plant, ammonia terminal, and warehouse facilities. The operation produces approximately 1.8 million tons of phosphate fertilizer per year which will augment Mosaic’s 8.2 million tons it produces annually. CF will supply Mosaic with 1 million tons on ammonia per year allowing Mosaic to cancel its plans to build a $1.1 billion ammonia manufacturing plant in Faustina, Louisiana and a $1 billion phosphate plant in Ona, Florida. The deal would mean that Mosaic would now account for more than half of North American sales of phosphates and may raise anti-trust concerns with the Department of Justice, however in the past the department has viewed the phosphate business as a global industry easing competition concerns. The deal is expected to close in the first half of 2014.
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