Door swings open for $26 billion Mosaic potash takeover

Potash producer Mosaic Co. (NYSE:MOS) is soon to become the prime industry target for takeover as shares owned by the founding Cargill family will become unrestricted on May 26th, Bloomberg reported Wednesday.

Potential tax consequences associated with the purchase of Mosaic will also expire later this month, opening the door even wider for an outright sale of the company.

Mosaic is the second largest Northern American producer of potash, with a current valuation of $26 billion.

Analysts at Goldman Sachs claim that Mosaic is "the best option for an acquirer seeking to gain a foothold in the industry."

BHP Billiton is seen as the front-running buyer candidate.

Mosaic's stock was up 3.3% Wednesday to $64.30.

 

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Sources: Tara Lachapelle reporting for Bloomberg; Yahoo Finance