Mosaic invests $1bn in Saudi venture
U.S. fertilizer giant Mosaic Co. (NYSE: MOS) is partnering with two Saudi Arabian firms on a $7 billion project to mine phosphates in the Mideast country.
The Minnesota-based company, the third-largest global fertilizer producer by revenues, said Tuesday it will invest $1 billion in the venture, which guarantees it a 25% stake on the joint endeavour.
The Saudi Arabian Mining, also known as Ma’aden, and Saudi Basic Industries Corp, or Sabic, the world’s main petrochemical maker by market capitalization, will own 60% and 15%, respectively.
The deal, the biggest-ever overseas venture for Mosaic, gives the company a source of phosphates (a crucial fertilizer ingredient) that is much closer to markets such as India.
The three companies are expected to sign a definitive agreement before September this year. Operations will begin in late 2016.