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PLYMOUTH, Minn. (AP) - The Mosaic Co. plans to buy the phosphate business of CF Industries in a deal the fertilizer producer values at about $1.4 billion.
The Plymouth, Minn., company will pay $1.2 billion in cash, plus $200 million to fund an escrow account CF Industries maintains for certain environmental obligations related to its Florida facilities. The deal gives Mosaic a Florida phosphate mine and treatment and processing plant, plus an ammonia terminal and finished product warehouse facilities in Tampa.
The deal is expected to add about 30 cents per share to Mosaic's 2015 earnings, excluding debt financing costs.
Mosaic expects to save about $500 million because it won't have to build a new processing plant. The CF Industries mine Mosaic is buying is located near a site for another mine Mosaic plans.
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