Vale concludes sale of fertilizer arm to Mosaic

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Tuesday, January 9, 2018

US-based Mosaic has completed the acquisition of Vale Fertilizantes, the fertilizer arm of Brazilian mining giant Vale, the two companies said late Monday in separate releases.

The US$2.5bn cash-and-stock deal involves Vale's phosphate assets in Brazil except the ones in Cubatão, its share of Bayóvar in Peru, the potash assets in Brazil, including the Carnalita project, and the Kronau potash project in Canada.

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On January 2, both companies said some final adjustments were made to the transaction's terms and conditions.

"Vale will retain an equity interest in the Tiplam port in the southeast of Brazil, formerly included in the transaction, and will receive about US$1.15bn plus 34.2mn shares of Mosaic, representing 8.9% of Mosaic's total capital after issuance of the shares, upon closing," Vale said at the time.

Mosaic said it will continue to have the right to use the port in accordance with commercial arrangements entered into between the parties.

As part of the agreement, Vale's CFO Luciano Siani Pires has been elected to Mosaic's board, the latter said.

The proceeds from the deal will be used to strengthen Vale's balance sheet and reduce its indebtedness, the miner said.