The Mosaic Co. on April 30 announced that it has entered into an agreement with the Saudi Arabian Mining Co. (Ma’aden) under which Mosaic will receive 111,012,433 shares of Ma’aden valued at approximately $1.5 billion in exchange for Mosaic’s current 25% stake in Ma’aden Wa’ad Al Shamal Phosphate Co., a joint venture between Mosaic, Ma’aden, and Saudi Basic Industries Corp.
“We have enjoyed a long and successful partnership with Ma’aden, and we look forward to continuing our work together under this evolved structure,” said Bruce Bodine, Mosaic President and CEO. “This transaction provides Mosaic 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.”
Mosaic’s cash investment in the jv was initially reported as being up to $1 billion (GM March 25, 2013). The agreement generally requires Mosaic to 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.
“Having formed our partnership with Mosaic in 2013, more than a decade on, this is an important evolution that we believe will create significant benefits for the growth of our phosphate business,” said Bob Wilt, Ma’aden CEO. “We look forward to working together with the Mosaic team to strengthen our phosphate business as we continue to build the mining sector into the third pillar of the Saudi economy.”
The transaction is subject to regulatory approvals, approval by Ma’aden’s shareholders, and other closing conditions that are customary for this type of transaction, and is expected to be completed by the end of 2024.