The deal is due to close by the end of this year and currently awaits regulatory and shareholder approval. Credit: Christoph Schaarschmidt via Shutterstock.com.

Saudi Arabian mining company Ma’aden has announced the acquisition of Mosaic’s 25% stake in phosphate joint venture (JV) Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC).

Ma’aden finalised a stock purchase and subscription agreement (SPSA) with Mosaic Company (guarantor) and Mosaic Phosphates (seller).

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Ma’aden will issue nearly 111 million new shares, worth SR5.62bn ($1.49bn), to acquire the 25% stake.           

At closing, the seller’s direct and indirect ownership in the company’s capital will constitute around 2.92%, while current shareholders’ ownership will fall to 97.08% from 100%.

The deal will increase Ma’aden’s stake in MWSPC from 60% to 85%, and also significantly expand its phosphate production capabilities.

See Also:

MWSPC, a JV between Ma’aden, Mosaic and Saudi Basic Industries Corporation, operates a fully integrated phosphate production facility in Saudi Arabia.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The facility has a design capacity of three million tonnes of di-ammonium phosphate annually.

The acquisition also includes Ma’aden acquiring the guarantor’s rights under the MCP/DCP Product Marketing Agreement and the Fertiliser Product Marketing Agreement, previously held by the guarantor and MWSPC.

The guarantor has agreed to ensure the due and punctual performance of certain obligations of the seller under the SPSA.

This deal is due to close by the end of this year and currently awaits regulatory and shareholder approval.   

Upon completion of the Acquisition, Ma’aden’s share capital will increase from SR36.91bn to SR38.02bn, through the issuance of 111,012,433 new shares at SR10 a share.

In July last year, Ivanhoe Electric formed a JV with Ma’aden, called Ma’aden Ivanhoe Electric Exploration and Development, to explore the country’s gold, copper, silver and electric metals.