Mosaic buying two Bay-area facilities for $1.4B

TAMPA BAY — The Mosaic Co. has signed a definitive agreement to acquire the phosphate business of CF Industries Inc. for $1.2 billion in cash plus another $200 million to fund CF Industries' retirement obligations.

Under the agreement, Mosaic is acquiring a phosphate manufacturing facility in Plant City, ammonia terminal and finished product warehouse facilities in Tampa and the 22,000-acre South Pasture phosphate mine and beneficiation plant in Hardee County. The CF Industries' facilities currently produce 1.98 million tons of phosphate fertilizer per year. Mosaic currently produces 9.04 million tons a year.

A big reason for the purchase is the proximity of CF Industries' South Pasture mine to Mosaic's planned Ona phosphate mine in Hardee County. The purchase is expected to save Mosaic roughly $500 million by not having to construct a $1 billion beneficiation plant.