CF Industries completes sale of phosphate business to Mosaic
CF Industries Holdings, Inc. announced that it has completed the sale of its phosphate business to The Mosaic Company for $1.4 billion or approximately $1 billion net of taxes and other adjustments. The sale follows the terms of the definitive agreement announced on October 28, 2013.
“We are pleased to have completed the sale of our phosphate operations to Mosaic,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “The net proceeds from the sale will be redeployed to execute the strategic initiatives we already have in progress, namely our nitrogen capacity expansions and completing our share repurchase authorization. Additionally, the supply agreements we have put in place with Mosaic will provide us a steady base of ammonia demand with attractive economics.”
In conjunction with the close of the sale transaction, CF Industries will begin to supply Mosaic with its share of the ammonia produced by the Company’s 50 percent 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.