CF Industries Closes Sale Of Phosphate Business To Mosaic

(RTTNews) - CF Industries Holdings, Inc. (CF) said Monday that it has completed the sale of its phosphate business to The Mosaic Co. (MOS) for $1.4 billion or about $1 billion net of taxes and other adjustments.

Under the deal, originally announced on October 28, 2013, Mosaic acquired a 25,000-acre phosphate mine and beneficiation plant, a phosphate manufacturing facility and an ammonia terminal and finished product warehouse facilities in the Tampa area. The facilities currently produce about 1.8 million tonnes of phosphate fertilizer per year, which will bring Mosaic's annual phosphates capacity to over 11 million tonnes.

In conjunction with the close of the sale deal, CF Industries will begin to supply Mosaic with its share of the ammonia produced by the company's 50% owned production facility in the Republic of Trinidad and Tobago. Additionally, the company has a long-term supply agreement with Mosaic to supply between 600,000 and 800,000 tons of ammonia per year for up to 15 years from its Donaldsonville nitrogen complex.

Deliveries of ammonia will begin no later than January 1, 2017 and will be priced at a defined margin over the cost of natural gas at Donaldsonville.