Mosaic Co., the largest U.S. producer of potash, will pay $1.2 billion to buy back shares from trusts held by philanthropies that were founded by Margaret A. Cargill, the late granddaughter of the founder of Cargill Inc.
The purchase will comprise 21.3 million shares at $54.58 apiece, the closing price yesterday, Plymouth, Minnesota-based Mosaic said today in a statement.
Cargill said in January it was exchanging its 64 percent stake in Mosaic for shares and debt held by Cargill investors and other parties. The deal allowed the trusts to exchange their Cargill shares and meet the needs of charitable trusts.
The transaction announced today completes the planned transfer of 157 million Mosaic shares, Mosaic said. Another 129 million shares are subject to transfer restrictions until November 2013.
UBS AG advised the Cargill trusts and JPMorgan Chase & Co. advised Mosaic.
Mosaic fell 7 percent to $50.76 at the close in New York.