Monday, June 14, 2010

Mosaic (NYSE:MOS) May Acquire Mexican Fertilizer Company

Mosaic (NYSE:MOS) has been in negotiations to acquire Mexican fertilizer company Grupo Fertinal SA for the last several months, and word is they may be getting closer to making the deal.

There are reportedly other parties of interest, but Mosaic is probably the company which will land the deal.

Major potash producers like Mosaic are moving against the growing threat of BHP Billiton (NYSE:BHP), which has one of the premiere potash deposits in the world in Canada, and is set to begin production which will directly challenge the other major potash players like Mosaic.

This is probably the major impetus behind Mosaic seeking out other potash deposits through acquisition, as they can bring production online in a way that will immediately affect the the company's revenue and earnings.

The price being thrown around for the acquisition is about $1 billion.

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