Ma’aden and Mosaic enter into a share purchase and subscription agreement to strengthen and streamline Ma’aden’s phosphate activities

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

The agreement provides for the sale by Mozaïek of all its shares in Ma’aden Wa’ad Al Shamal Phosphate Company, a joint venture between Ma’aden, Mozaïek 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 stake in MWSPC to 85%, while Mosaic will exchange its 25% stake in MWSPC for approximately 111 million shares in Ma’aden.

The acquisition of Mosaic’s stake in MWSPC, an asset that currently produces more than 3 million tonnes of phosphate fertilizers and has been a focal point for the global phosphate industry since 2018, is expected to ensure greater integration of Ma’aden’s phosphate activities. It will streamline its business model, share ownership, logistics and marketing. As a result of the transaction, Ma’aden will acquire the marketing rights of Mosaic within the MWSPC joint venture, which will increase the volume of phosphates marketed by Ma’aden by more than 750,000 tonnes per year (approximately 20% of additional volumes ). The transaction contributes to Ma’aden’s growth agenda while preserving its balance sheet.

The transaction is expected to continue to enhance Ma’aden’s commercial excellence in the marketing and distribution of phosphate fertilizers, including a network of operations to supply key fertilizer markets and sales offices worldwide. As part of the transaction, Ma’aden and Mosaic have entered into an ongoing partnership to continue to drive operational excellence within a more integrated phosphate business unit.

Bob Wilt, CEO of Ma’aden, said: “Having entered into our partnership with Mosaic in 2013, more than a decade later, this is an important evolution that we believe will deliver significant benefits to the growth of our phosphate business. We look forward to working 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 Mozaïek with transparent value for its investment in Ma’aden, greater capital flexibility going forward and the opportunity to contribute expertise to Ma’aden’s phosphate activities.”