The Mosaic Company closed the purchase of Vale Fertilizantes from the Brazilian mining company Vale S.A. The negotiation, which began in 2016, involved a USD 2.5 billion deal which additionally included the indirect purchase of 40% of the capital stock of Compañía Minera Miski Mayo S.R.L. in Peru.

In the negotiation, The Mosaic Company was represented by Simpson Thacher & Bartlett LLP in New York, Washington, D.C., and Palo Alto, while Miranda & Amado Abogados, Lobo de Rizzo Advogados and M. & M. Bomchil Abogados represented The Mosaic Company in Lima, Sao Paulo and Buenos Aires, respectively. The company also sought advice from its in-house corporate team.

Vale was assisted by Cleary Gottlieb Steen & Hamilton LLP in Nueva York, Sao Paulo and Washington D.C.; Cescon, Barrieu, Flesch & Barreto Advogados, in Sao Paulo, and Baker McKenzie in Buenos Aires. Its subsidiary, Compañía Minera Miski Mayo S.R.L., received advice from its legal department and from Muñiz, Olaya, Meléndez, Castro, Ono & Herrera Abogados.

The purchase price consisted of USD 1.25 billion in cash and around 42,3 million shares of the Mosaic Company common stock, which accounts for almost 11 % of the company.

Vale will also have the chance to earn an additional amount of up to USD 260 million which will be paid cash over a period of two years counted as from the date of close, after complying with certain financial requirements.

Vale Fertilizantes includes five phosphate rock mines, four chemical and fertilizer production facilities, and a potash plant in Brazil. The sale, which includes the 40% participating interest held by Mosaic Vale in the Miski Mayo phosphate mine in Peru, also includes a potash project in Canada. The US company has the option to include the Rio Colorado potash project (Argentina) in the deal.

The Mosaic Company is one of the world’s leading producers of concentrated phosphate and potash crop nutrients, as well as a single source global supplier of phosphates and potash fertilizers for the agricultural industry worldwide. Vale Fertilizantes S.A. is engaged in the manufacture and marketing of fertilizers for farming use. It was founded in 1972 and is headquartered in Sao Paulo, Brazil. Since January 8th it operates as a subsidiary of The Mosaic Company.

The company is engaged in the development, production, processing and marketing of animal feed products; chemicals and raw materials for the animal feed industry; and other products for agricultural and livestock markets.

Source:LexLatin