FERTILIZERS: Mosaic to buy Vale’s fertilizer business

PLYMOUTH, MN – The Mosaic Company has announced plans to purchase Vale SA’s fertilizer business for US$2.5 billion. Mosaic is offering US$1.25 billion in cash and the other half through the issuance of 42.3 million shares to Vale. With an interest of approximately 11%, Vale will become Mosaic’s largest shareholder. Vale’s fertilizer arm, Vale Fertilizantes, has an annual capacity to produce 4.8 million tonnes of finished phosphate and 500,000 tonnes of potash. It includes five Brazilian phosphate mines and four processing plant plus one potash plant in Brazil. The acquisition also gives Mosaic Vale’s 40% interest in the Miski Mayo phosphate mine in Peru and the potash project at Kronau, SK. Mosaic has the option to include the Rio Colorado potash project in Argentina. The deal does not include Vale’s Cubatao-based nitrogen and non-integrated phosphate business. “This acquisition provides Mosaic a tremendous opportunity to capitalize on the fast growing Brazilian agricultural market and from improving business conditions,” said president and CEO Joc O’Rourke. “We see this as an ideal strategic fit for Mosaic. We have proven expertise in phosphate mining and manufacturing, a strong record of successful acquisition integration, and extensive relationships and experience in Brazil.” The acquisition will also help boost Mosaic’s earnings outlook as the merger of two Canadian potash producers, PotashCorp and Agrium, moves forward. More information is available at www.MosaicCo.com.