Brazil’s Vale S.A. said last week it has concluded the acquisition from The Mosaic Co. (Mosaic) of an additional stake of 20.27 percent in the equity capital of Vale Fertilizantes S.A. (Vale Fertilizantes, previously named Fertilizantes Fosfatados S.A. Fosfertil), for US$1.03 billion. Through its wholly-owned subsidiary, Mineração Naque S.A., Vale exercised a call option pursuant to a contract with Mosaic on Feb. 10, 2010. This contract was part of the process of acquisition of 100 percent of Bunge Participações e Investimentos, publicly announced on Jan. 27, 2010.
The acquisition of 20.27 percent in Vale Fertilizantes, which corresponds to 27.27 percent of the common shares and 16.65 percent of the preferred shares of the firm, was held at a price of US$12.0185 per share, the same price per share paid to Bunge Fertilizantes S.A., Fertilizantes Heringer S.A., Fertilizantes do Paraná Ltda, and Yara Brasil Fertilizantes S.A., which consolidated the acquisition of these direct and indirect stakes in Vale Fertilizantes, as publicly announced on May 27, 2010. Vale says it now owns 78.9 percent of Vale Fertilizantes, which corresponds to 99.81 percent of its common shares and 68.24 percent of its preferred shares.
Vale says the deal is consistent with its goal to become a global leader in the fertilizer business. It claims a large pipeline of projects involving potash and phosphates assets in Brazil, Argentina, Peru, Canada, and Mozambique, currently under different stages of development. In July 2010, the phosphate rock mine of Bayóvar, Peru, came on stream.
Mosaic said gross proceeds from the deal will be approximately $1 billion. It said the transaction will have no impact on Mosaic’s significant crop nutrient blending and distribution business in Brazil, or on its SSP production and port activities at the Paranagua complex.