Mosaic divests Saudi joint venture stake to Ma’aden in $1.5 billion transaction

Leading US fertilizer producer Mosaic Co. announced to the media the sale of its 25% interest in the Ma’aden Wa’ad Al Shamal Phosphate Co. (MWSPC) to Saudi Arabian mining company Ma’aden in a deal valued at approximately $1.5 billion. The transaction, conducted through a stock exchange, sees Ma’aden, which already holds a 60% stake, increase its share in the joint venture.

MWSPC, situated in the northern province of Saudi Arabia, incorporates a phosphate mine, beneficiation plants, phosphoric and sulphuric acid facilities, power plants, and downstream business units, with a yearly production capacity nearing 3 million tonnes of phosphate fertilizer products.

In February, Mosaic indicated that a substantial portion of the revenue from this venture was allocated to debt reduction, suggesting that maintaining investment in the joint venture was not a strategic priority for the company.

The partnership, also including Saudi Basic Industries Corp holding a 15% interest, has been operational for over a decade. Bruce Bodine, Mosaic’s president and CEO, noted that the companies will maintain their collaborative efforts under the new arrangement.

Bob Wilt, CEO of Ma’aden, highlighted the strategic importance of this development, stating, “This is an important evolution that we believe will create significant benefits for the growth of our phosphate business. 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 slated for completion by the year’s end, with Mosaic agreeing to retain the Ma’aden shares it acquires for at least three years. The shares will become progressively transferable after each anniversary of the deal’s closure, beginning at the third year.

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