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Saudi Arabian miner Ma’aden and the Mosaic Company, a producer and marketer of concentrated phosphate and potash crop nutrients, on Tuesday said they have entered into a share purchase and subscription agreement.
Under the deal, the US-based Mosaic will sell all its shares in Ma’aden Wa’ad Al Shamal Phosphate Co. (MWSPC), a joint venture between Ma’aden, Mosaic and Saudi Basic Industries Corporation (SABIC), to Ma’aden in exchange for newly issued shares in Ma'aden.
Upon completion, this transaction will increase Ma’aden’s shareholding in MWSPC to 85%, while Mosaic will exchange its 25% shareholding in MWSPC for approximately 111 million shares in Ma’aden, a joint statement issued by the companies stated.
As a result of the transaction, Ma’aden will acquire the marketing rights of Mosaic within the MWSPC joint venture, increasing its volume of Ma’aden marketed phosphates by more than 750,000 tonne annually (approximately 20% of additional volumes).
The transaction is expected to continue to enhance Ma’aden’s commercial excellence in phosphates fertilizers marketing and distribution, which includes a network of operations to supply key fertilizer markets and sales offices globally.
As part of the transaction, Ma’aden and Mosaic have agreed to an ongoing partnership. The NYSE-listed Mosaic is the largest US producer of potash and phosphate fertilizer.
The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed during Q3 2024.
The Saudi miner operates 17 mines and sites, and export products to over 30 countries.
(Writing by Brinda Darasha; editing by Seban Scaria)
