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Cargill to Split Off 64% Stake in Mosaic to Holders

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By Christopher Donville and Shruti Date Singh

January 19, 2011 at 2:48 AM UTC

This article is for subscribers only.

Cargill Inc. plans to split off its majority stake in Mosaic Co., North America’s second-largest fertilizer producer, in a $24.3 billion deal that will make Mosaic a takeover target.

Cargill will exchange 179 million Mosaic shares for Cargill stock held by Cargill investors, the companies said today in a statement. Minnetonka, Minnesota-based Cargill will exchange its remaining 107 million Mosaic shares for Cargill debt held by third parties. The Mosaic shares will be sold on in a series of secondary offerings.