Cargill Inc. plans to split off its majority stake in Mosaic Co., North America’s second-largest fertilizer producer, in a $24.3 billion deal that will make Mosaic a takeover target.
Cargill will exchange 179 million Mosaic shares for Cargill stock held by Cargill investors, the companies said today in a statement. Minnetonka, Minnesota-based Cargill will exchange its remaining 107 million Mosaic shares for Cargill debt held by third parties. The Mosaic shares will be sold on in a series of secondary offerings.
Mosaic may attract suitors as fertilizer prices gain on higher grain demand. BHP Billiton Ltd. made a $40 billion bid in August for Potash Corp. of Saskatchewan Inc., Mosaic’s largest competitor, which was blocked by the Canadian government three months later. Russian producer OAO Uralkali said in December it will acquire domestic rival OAO Silvinit for $7.8 billion.