Arab News

Ma’aden strengthen­s phosphate business through share purchase agreement with Mosaic

- Arab News Riyadh

Saudi Arabian Mining Co. has entered into a share purchase and subscripti­on agreement with the Mosaic Co. to expand its phosphate business. Headquarte­red in Florida, the firm is one of the leading producers and marketers of concentrat­ed phosphate and potash crop nutrients, according to a press release. As part of the agreement, Mosaic will transfer its 25 percent shareholdi­ng in Ma’aden Wa’ad Al Shamal Phosphate Co., a joint venture also involving Ma’aden and Saudi Basic Industries Corp., to the Saudi mining company.

This deal will effectivel­y raise Ma’aden’s stake in MWSPC to 85 percent.

In return, Mosaic will receive approximat­ely 111 million newly issued shares in Ma’aden.

Bob Wilt, CEO of Ma’aden, said: “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.” Ma’aden Wa’ad Al Shamal Phosphate Co. is an $8 billion joint venture situated in Wa’ad Al Shamal Minerals Industrial City, Saudi Arabia. With its seven advanced plants, it stands as a significan­t global phosphate production hub.

Bruce Bodine, president and CEO of Mosaic, highlighte­d the long and fruitful partnershi­p with Ma’aden and expressed optimism about the new 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,” he added.

The acquisitio­n of Mosaic’s stake in MWSPC is expected to provide greater integratio­n across the

Saudi mining firm’s phosphate operations. MWSPC, an asset currently producing over 3 million tonnes of phosphate fertilizer­s per year, has been a focal point for the global phosphates industry since 2018, the press release added.

This move is expected to streamline Ma’aden’s operating model, shareholdi­ngs, logistics, and marketing efforts.

Furthermor­e, the company will inherit Mosaic’s marketing rights within the MWSPC joint venture, augmenting its marketed phosphates volume by more than 750,000 tonnes annually, approximat­ely a 20 percent increase.

This move fits into Ma’aden’s growth plan while keeping its finances strong. It will boost the company’s ability to market and distribute phosphate fertilizer­s globally, tapping into key markets.

Newspapers in English

Newspapers from Saudi Arabia