PLYMOUTH, Minn.—The Mosaic Co. plans to buy the phosphate business of CF Industries in a deal the fertilizer producer values at about $1.4 billion.
The Plymouth, Minn., company will pay $1.2 billion in cash, plus $200 million to fund an escrow account CF Industries uses to fund certain retirement obligations in Florida. The deal gives Mosaic a Florida phosphate mine and treatment and processing plant, plus an ammonia terminal and finished product warehouse facilities in Tampa.
Mosaic expects to save about $500 million because it won’t have to build a new processing plant. The CF Industries mine Mosaic is buying is located near a site for another mine Mosaic plans.
Mosaic, a global phosphate company, operates four Canadian locations all in Saskatchewan. CF Industries’s Canadian operations include plants in Courtright, Ont., and Medicine Hat, Alta.