Deals
Mosaic Deal Talk Sparked as Barriers Lift: Real M&A
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Mosaic Co., the fertilizer maker that was split off from Cargill Inc. two years ago, is poised to become the industry’s biggest takeover target after hurdles to a deal are lifted this month.
On May 26, charitable trusts associated with Cargill’s founding family can begin the process of selling restricted Mosaic shares they got in the split, opening the door to a sale of the whole company. The potential tax consequences related to buying Mosaic also expire this month. While an acquisition of the $26 billion company would be the biggest fertilizer deal on record, Mosaic’s valuation relative to profit is 23 percent cheaper than that of its closest rival Potash Corp. of Saskatchewan Inc., according to data compiled by Bloomberg.