Industry News

Mosaic Plans Strategizes to Acquire Fertilizer Business of Vale for USD2.5 Billion

United States: The Mosaic Company, a United States based leading manufacturer of concentrated phosphate and potash crop nutrients has reached an agreement with a Brazil based multinational mining company, that is, Vale SA to acquire fertilizers business of Vale at a price of USD2.5 billion. As per Mr. Joc O'Rourke, the President and CEO of Mosaic, this acquisition will improve business conditions of the company in the growing Brazil agricultural market. As per agreement, Mosaic will acquire fertilizer business having a capacity to produce 4.8 million tons of finished phosphate crop nutrients and 500,000 metric tons of potash annually. Additionally, the company will purchase Vale's 40% interest in the Miski Mayo phosphate mine in Peru, and a potash project at Kronau, Saskatchewan, Canada.

TechSci Research depicts that the acquisition will leverage Mosaic’s crop nutrient business, outperform their competition in both global as well as domestic fertilizers market. Further, this acquisition would also strengthen the sulphuric acid business of the company as sulphuric acid is a prerequisite for production of phosphate fertilizers.

According to the recently published report by TechSci Research, “Global Sulphuric Acid Market, By Manufacturing Process (Lead Chamber and Contact Process), By Raw Material (Sulphur, Exhaust Gases, Pyrite), By End-Use Industry (Fertilizers, Chemical etc.), By Region, Competition Market Forecast & Opportunities, 2011-2025”, global sulphuric acid market is projected to exhibit a CAGR of 2.27% during 2016-2025, on account of rising use of sulphuric acid as an intermediate as well as a raw material for chemical manufacturing. Moreover, fertilizers application segment dominated global sulphuric acid across in 2015 and the segment is projected to continue dominating the market through 2025, owing to expanding phosphate fertilizer production capacities to address the increasing demand for food. Moreover, Asia-Pacific was the largest regional market for sulphuric acid in 2015, and the region is anticipated to continue dominate the market through 2025, on account of high demand from countries such as China and India.

Relevant News