Mosaic Company secures $1.5B deal with Ma'aden

The Mosaic Company (NYSE: MOS) has announced a significant agreement with the Saudi Arabian Mining Company ("Ma'aden"). In exchange for its current 25 percent stake in Ma'aden Wa’ad Al Shamal Phosphate Company, Mosaic will receive 111,012,433 shares of Ma'aden valued at approximately $1.5 billion. The agreement stipulates that Mosaic must hold its Ma'aden shares for a minimum of three years, with one-third of the shares becoming transferable after the third, fourth, and fifth anniversary of the closing.

Mosaic's President and CEO, Bruce Bodine, highlighted the transaction as providing the company with a transparent value for its investment in Ma'aden, greater capital flexibility in the future, and the ability to contribute expertise to Ma'aden’s phosphate operations. On the other hand, Ma'aden's CEO, Bob Wilt, emphasized the importance of the evolution of their partnership with Mosaic, indicating that it will create significant benefits for the growth of their phosphate business.

The transaction, subject to regulatory approvals, approval by Ma'aden’s shareholders, and other closing conditions, is expected to be completed by the end of 2024.

BofA Securities served as the lead financial advisor to Mosaic, while Lazard also provided financial advisory services. Legal counsel to Mosaic was provided by Simpson Thacher & Bartlett LLP.

The Mosaic Company is known as one of the world’s leading producers and marketers of concentrated phosphate and potash crop nutrients, serving as a single-source provider of phosphates and potash fertilizers and feed ingredients for the global agriculture industry. Today the company's shares have moved 1.8% to a price of $31.43. Check out the company's full 8-K submission here.

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