30 October 2013 22:33 [Source: ICIS news]
HOUSTON (ICIS)--Mosaic is pursuing a plan to sell its operations in Argentina and Chile, the fertilizer producer said on Wednesday.
The company declined to comment on terms of the sales and specifically what assets would be included in a proposed transaction, but regional media was reporting that it would include a phosphate fertilizer facility located in Argentina and port terminal operations. In Chile, the company has distribution operations.
Analysts speculated late Wednesday that the decision could have been prompted by disappointing growth of sales volumes in both regions. In the company’s annual report dated 31 May 2013, Mosaic had $258.3m (€188.6m) in net sales in Argentina and $116.5m in Chile.
“We will immediately begin preparations for a sale process and will work quickly to complete a transaction. Mosaic will continue running our business until a sale is completed,” said Rob Litt, Mosaic spokesperson.
On Monday the fertilizer producer announced it had agreed to acquire the phosphate business of CF Industries for $1.2bn in cash plus $200m to fund CF’s asset retirement obligation escrow. The deal included the Hardee County, Florida, phosphate mine and plant as well as an ammonia terminal and product warehouse in Tampa.
($1 = €0.73)
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