By Rod Nickel
Oct 28 (Reuters) - Mosaic Co said on Monday that itwould buy the phosphate business of fellow U.S. fertilizercompany CF Industries Holdings Inc for $1.2 billion incash.
Shares of Mosaic, the world's biggest producer of finishedphosphate products, rose 1.7 percent to $46.75 in trading beforethe market opened, while CF was up 2.7 percent at $215.32.
Minnesota-based Mosaic will acquire the South Pasturephosphate mine and plant, a phosphate manufacturing plant andammonia terminal and warehouse facilities, all in Florida.
The facilities produce about 1.8 million tonnes of phosphatefertilizer per year, topping up the annual 8.2 million tonnesproduced by Mosaic and adding about 30 cents per share to its2015 earnings, the company said.
Mosaic will also commit $200 million to cover the closureand long-term care of phosphogypsum stacks under CF's Floridaoperations.
The deal signals Illinois-based CF's increased focus on itscore nitrogen fertilizer products and comes after Mosaic hassaid it was looking to increase its production of phosphate, oneof three critical crop nutrients.
Mosaic stock has been under pressure this year because ofweakness in the global price of the crop nutrient potash, ofwhich the company is the second-biggest North American producer.
CF will supply Mosaic with 1 million tonnes a year ofammonia, a nitrogen product used in making finished phosphateproducts. This will allow Mosaic to scrap its plans to build a$1.1 billion ammonia manufacturing plant in Faustina, Louisiana.
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