The Mosaic Company Closes Global Resolution With U.S. Agri-Chemicals

05-Dec-2005

The Mosaic Company announced that it has closed several transactions comprising the previously announced global resolution with U.S. Agri-Chemicals Corporation (USAC) and its parent company, Sinochem Corporation, resolving various commercial matters and outstanding disputes among the parties.

Under the agreements a Mosaic subsidiary paid $84 million to USAC, constituting a refund and accrued interest on prior payments made by USAC, for the early termination of an existing phosphate rock sales agreement under which Mosaic previously sold approximately two million short tons of phosphate rock to USAC on an annual basis. In addition, the parties have settled a pending lawsuit for $10 million relating to prior pricing disputes under the same phosphate rock sales agreement. Mosaic also acquired various other assets, including among others, operating equipment and spare parts previously used by USAC in its Florida phosphate operations in exchange for 2,429,765 shares of Mosaic common stock, valued by the parties at $32 million.

Mosaic and USAC continue to have a binding purchase agreement for real property owned by USAC containing approximately three million short tons of unmined phosphate reserves in Central Florida. This transaction, which is valued at approximately $6 million that Mosaic would pay in the form of 455,581 shares of its common stock, is subject to certain conditions which must be fulfilled on or prior to March 31, 2006.

https://www.chemeurope.com/en/news/50655/the-mosaic-company-closes-global-resolution-with-u-s-agri-chemicals.html