Ma’aden and Mosaic enter share purchase and subscription agreement to strengthen and streamline Ma’aden’s phosphate business

Ma’aden and The Mosaic Company has announced today that they have entered into a share purchase and subscription agreement.

The agreement provides for the sale by Mosaic of all its shares in Ma’aden Wa’ad Al Shamal Phosphate Company, a joint venture investment among Ma’aden, Mosaic and Saudi Basic Industries Corporation, 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.

The acquisition of Mosaic’s stake in MWSPC, an asset that is currently producing over 3 million tpy of phosphate fertilizers and has been a focal point for the global phosphates industry since 2018, is expected to provide greater integration across Ma’aden’s phosphate operations. It will streamline its operating model, shareholdings, logistics and marketing. 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 tpy (circa. 20% of additional volumes). The transaction delivers on Ma’aden’s growth agenda while preserving its balance sheet.

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 to continue to drive operational excellence across a more integrated phosphate business unit.

Bob Wilt, CEO of Ma’aden, said: “Having formed our partnership with Mosaic in 2013, more than a decade on, 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.”

Bruce Bodine, President and CEO of Mosaic, said: “We have enjoyed a long and successful partnership with Ma’aden, and we look forward to continuing our work together under this evolved structure. This transaction provides Mosaic with a transparent value for its investment in Ma’aden, greater capital flexibility in the future, and the ability to contribute expertise to Ma’aden’s phosphate operations.”

Read the article online at: https://www.worldfertilizer.com/phosphates/30042024/maaden-and-mosaic-enter-share-purchase-and-subscription-agreement-to-strengthen-and-streamline-maadens-phosphate-business/