Saudi Ma’aden and Mosaic Forge Share Purchase and Subscription Agreement

On 30 April 2024, The Mosaic Company (NYSE: MOS) revealed its entry into a pact with the Saudi Arabian Mining Company ("Ma'aden"). As per the terms, Mosaic will acquire 111,012,433 shares of Ma'aden, amounting to approximately $1.5 billion in value. This transaction is in exchange for Mosaic's existing 25 percent ownership in Ma'aden Wa'ad Al Shamal Phosphate Company, a joint venture among Mosaic, Ma'aden, and Saudi Basic Industries Corporation.

In broad terms, the agreement stipulates that Mosaic must retain its Ma'aden shares for at least three years. Following this period, one-third of the shares will become transferable after the third, fourth, and fifth anniversaries of the closing.

Bruce Bodine, President and CEO of Mosaic, expressed, "Our partnership with Ma'aden has been enduring and fruitful, and we anticipate further collaboration within this refined framework. This transaction offers Mosaic a clear valuation for its stake in Ma'aden, increased financial flexibility moving forward, and the opportunity to lend our expertise to Ma'aden's phosphate operations."

Ma'aden CEO Bob Wilt remarked, "Since our partnership's inception with Mosaic in 2013, this transition marks a pivotal moment over a decade later, one we believe will yield substantial advantages for the expansion of our phosphate enterprise. Collaborating with the Mosaic team, we anticipate enhancing our phosphate business while further solidifying the mining sector as a cornerstone of the Saudi economy."

Completion of the transaction is contingent upon regulatory approvals, as well as approval by Ma'aden's shareholders and other customary closing conditions typical for such transactions. It is anticipated to conclude by the end of 2024.

The Mosaic Company stands as a leading global producer and distributor of concentrated phosphate and potash crop nutrients. It serves as a primary supplier of phosphates and potash fertilizers, as well as feed ingredients, to the worldwide agricultural sector. In North America, Mosaic's operations contribute to an estimated 34% of annual potash production and 74% of annual concentrated phosphate crop nutrient production. Phosphate mining occurs in Central Florida, while potash is mined in Saskatchewan and New Mexico. Utilizing these minerals, Mosaic manufactures high-quality fertilizers and animal feed, distributing them globally. Roughly half of these products are supplied to customers in North America, with the remainder reaching clients worldwide, spanning key agricultural regions.

Ma'aden stands as one of the most rapidly expanding mining enterprises globally and holds the distinction of being the largest diversified mining and metals corporation in the Middle East. It ranks within the top 10 global mining companies in terms of market capitalization. Since its establishment in 1997 by royal decree, Ma'aden has made significant strides. Initially tasked with the mission of cultivating Saudi Arabia's minerals sector as the kingdom's third industrial pillar, alongside oil and petrochemicals, Ma'aden has undergone considerable evolution.