The Minnesota-based company, until now primarily focused on potash, will pay $1.2 billion cash to acquire the South Pasture mine and related assets plus $200 million to fund CF’s asset retirement obligation.
The acquisition is expected to add approximately $0.30 per share to Mosaic’s 2015 earnings per share, excluding any debt financing costs and any changes to outstanding share count, the company said.
The firm, a member of the Canpotex group of potash-exporting companies, said CF will contribute one million tonnes a year of ammonia, a nitrogen product used in making finished phosphate products. This will allow Mosaic to abandon its plans to build a $1.1-billion ammonia manufacturing plant in Louisiana.
Potash is one of the main ingredients for making agricultural fertilizer, which is used to promote crop growth. Phosphate and nitrogen are the other two key components.
Shares in CF were trading almost 3.7% higher at $217.28 at 11:16 a.m. ET October 28.
Reprinted by permission of MINING.com