Cargill Divests Mosaic Stake | January 24, 2011 Issue - Vol. 89 Issue 4 | Chemical & Engineering News
Volume 89 Issue 4 | p. 18 | Concentrates
Issue Date: January 24, 2011

Cargill Divests Mosaic Stake

Department: Business
Keywords: fertilizers

Agricultural giant Cargill will divest its 64% stake in fertilizer maker Mosaic via a distribution to Cargill shareholders and debt holders. Cargill’s stake, based on Mosaic’s closing stock price on Tuesday, Jan. 18, the day the transaction was announced, is worth $24 billion. In a complex deal meant to be tax-free to Cargill shareholders, Cargill will exchange 179 million of its 286 million shares in Mosaic with charitable trusts and other Cargill shareholders for Cargill shares. Cargill will exchange its remaining 107 million shares for debt. For two-and-a-half years, there will be restrictions on the transfer of a portion of the distributed shares. Cargill says the sale will allow it to make distributions to its charitable trusts without having to go public. Mosaic was formed in 2004 through the merger of Cargill’s fertilizer unit with IMC Global. Mosaic shares are worth almost five times what they were when it was formed.

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