Mosaic and Fosfatados Centro Announce Agreement for Sale of Phosphate Mining Unit in Brazil
The Mosaic Company (NYSE:MOS) has announced an agreement to sell its phosphate mining asset in Patos de Minas, Brazil to Fosfatados Centro SPE Ltda. The deal, valued at $125 million, will be paid in cash over six years. Upon closing, Fosfatados Centro will take over the mine and tailings dams operations.
The transaction requires regulatory approvals, including clearance from the Brazilian Administrative Council for Economic Defense (CADE). This strategic move aligns with Mosaic's goal to monetize non-core assets and redirect capital to higher-return opportunities. The deal is also expected to contribute to the Brazilian fertilizer market's phosphate supply and support the National Fertilizer Plan.
La Mosaic Company (NYSE:MOS) ha annunciato un accordo per vendere il suo asset minerario di fosfati a Patos de Minas, Brasile, a Fosfatados Centro SPE Ltda. L'affare, del valore di 125 milioni di dollari, sarà pagato in contante nell'arco di sei anni. Alla chiusura, Fosfatados Centro assumerà la gestione della miniera e delle dighe di residui.
La transazione richiede approvazioni normative, inclusa l'autorizzazione dal Consiglio Amministrativo Brasiliano per la Difesa Economica (CADE). Questa mossa strategica è in linea con l'obiettivo di Mosaic di monetizzare asset non core e reindirizzare il capitale verso opportunità con rendimenti più elevati. Si prevede inoltre che l'accordo contribuisca alla fornitura di fosfati nel mercato dei fertilizzanti brasiliano e supporti il Piano Nazionale per i Fertilizzanti.
La Mosaic Company (NYSE:MOS) ha anunciado un acuerdo para vender su activo de minería de fosfatos en Patos de Minas, Brasil, a Fosfatados Centro SPE Ltda. El acuerdo, valorado en 125 millones de dólares, se pagará en efectivo durante seis años. Al cierre, Fosfatados Centro asumirá las operaciones de la mina y de las presas de relaves.
La transacción requiere aprobaciones regulatorias, incluyendo la autorización del Consejo Administrativo Brasileño para la Defensa Económica (CADE). Este movimiento estratégico está alineado con el objetivo de Mosaic de monetizar activos no esenciales y redirigir capital hacia oportunidades con mayores retornos. Se espera que el acuerdo también contribuya al suministro de fosfatos en el mercado brasileño de fertilizantes y apoye el Plan Nacional de Fertilizantes.
모자이크 컴퍼니 (NYSE:MOS)는 브라질 파토스 드 미나스의 인산염 광산 자산을 포스파타도스 센트로 SPE Ltda에 판매하기로 합의했다고 발표했습니다. 이 거래는 1억 2500만 달러 가치가 있으며, 6년 동안 현금으로 지급됩니다. 거래가 완료되면, 포스파타도스 센트로가 광산 및 tailings 댐 운영을 인수하게 됩니다.
이번 거래는 브라질 경제 방어를 위한 관리위원회(CADE)의 승인 등 규제 승인이 필요합니다. 이 전략적 움직임은 모자이크의 비핵심 자산을 수익화하고 더 높은 수익 기회로 자본을 재배분하려는 목표와 일치합니다. 또한 이 거래가 브라질 비료 시장의 인산염 공급에 기여하고 국가 비료 계획을 지원할 것으로 예상됩니다.
La Mosaic Company (NYSE:MOS) a annoncé un accord pour vendre son actif d'exploitation minière de phosphate à Patos de Minas, au Brésil, à Fosfatados Centro SPE Ltda. L'opération, d'une valeur de 125 millions de dollars, sera payée comptant sur six ans. À la clôture, Fosfatados Centro prendra en charge les opérations de la mine et des barrages de déchets.
La transaction nécessite des approbations réglementaires, y compris une autorisation du Conseil administratif brésilien de la défense économique (CADE). Ce mouvement stratégique s'aligne avec l'objectif de Mosaic de monétiser des actifs non essentiels et de rediriger le capital vers des opportunités à haut rendement. L'accord devrait également contribuer à l'approvisionnement en phosphate du marché brésilien des engrais et soutenir le Plan national des engrais.
Die Mosaic Company (NYSE:MOS) hat eine Vereinbarung angekündigt, um ihr Phosphatbergbauvermögen in Patos de Minas, Brasilien, an Fosfatados Centro SPE Ltda zu verkaufen. Der Deal, der auf 125 Millionen Dollar geschätzt wird, wird in bar über sechs Jahre bezahlt. Nach dem Abschluss wird Fosfatados Centro die Mine und die Rückhaltebecken übernehmen.
Die Transaktion erfordert regulatorische Genehmigungen, darunter auch die Freigabe des brasilianischen Verwaltungsrats für wirtschaftliche Verteidigung (CADE). Dieser strategische Schritt entspricht dem Ziel von Mosaic, nicht betriebsnotwendige Vermögenswerte zu monetarisieren und Kapital in Möglichkeiten mit höheren Renditen umzuleiten. Es wird auch erwartet, dass der Deal zur Phosphatzufuhr des brasilianischen Düngemittelmarktes beiträgt und den nationalen Düngemittelplan unterstützt.
- Sale of non-core asset for $125 million in cash
- Strategic alignment with company's capital redeployment strategy
- Reduction in operational responsibilities and associated costs
- Extended payment terms over 6 years rather than immediate cash receipt
Insights
The
The deal's structure minimizes immediate financial impact but provides long-term strategic benefits. By divesting this non-core asset, Mosaic can redirect capital and management focus toward higher-margin operations. Brazil remains a important market for phosphate fertilizers, but this particular asset likely had lower returns compared to Mosaic's other operations.
Given Mosaic's
This transaction reflects broader shifts in the global fertilizer market dynamics. Brazil's domestic fertilizer production capacity has become increasingly strategic, particularly as geopolitical tensions affect global supply chains. Fosfatados Centro's acquisition aligns with Brazil's goal to reduce import dependency, which could reshape regional market dynamics.
For retail investors, this deal signals Mosaic's strategic pivot toward operational efficiency. The company's focus on "high-returning areas" suggests potential future investments in more profitable segments. The gradual payment structure indicates confidence in Brazil's fertilizer market stability while providing Mosaic with predictable future cash flows.
The timing is particularly relevant given current global food security concerns and agricultural commodity prices. This deal positions both companies to better serve Brazil's expanding agricultural sector, though Mosaic's strategic exit suggests the asset may require significant investment to reach optimal production levels.
TAMPA, FL / ACCESSWIRE / January 13, 2025 / The Mosaic Company (NYSE:MOS) and Fosfatados Centro SPE Ltda (‘Fosfatados Centro') announced today that they have entered into an agreement for the sale of a phosphate asset owned by Mosaic located in Patos de Minas, Brazil. Upon the closing of the transaction, Fosfatados Centro will assume responsibility for the Patos de Minas mine and tailings dams and pay Mosaic
"This transaction aligns with Mosaic's strategy to scrutinize and monetize non-core assets and redeploy capital to high-returning areas, and we believe the full value of the Patos asset will be realized in the capable hands of Fosfatados Centro. We are grateful to our employees who have been dedicated to the continued maintenance of the asset", says Karen Swager, Mosaic's Executive Vice President, Operations.
"This agreement represents an important step for the phosphate supply to the Brazilian fertilizer market and demonstrates our commitment to advancing the National Fertilizer Plan. We are confident that we will operate the Patos de Minas complex with great efficiency after the completion of the contract," says Rodolfo Galvani Júnior, owner of Fosfatados Centro.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphates and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
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This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: political and economic instability and changes in government policies in countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, a material adverse change in our Ma'aden investment with respect to the financial position, performance, operations or prospects of Ma'aden; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic's potash mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE: The Mosaic Company
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FAQ
How much is Mosaic (MOS) selling its Patos de Minas phosphate mine for?
What regulatory approvals does the MOS Patos de Minas sale need?
Why is Mosaic (MOS) selling its Patos de Minas phosphate asset?
What will Fosfatados Centro acquire from Mosaic's (MOS) Patos de Minas operation?
