The Mosaic Co. plans to buy the phosphate business of CF Industries, expanding the fertilizer producer's holdings near Tampa in a deal valued at about $1.4 billion.
The Plymouth, Minn., company said it will pay $1.2 billion in cash, plus $200 million to fund an escrow account CF Industries maintains for certain environmental obligations related to its Florida facilities.
The deal gives Mosaic a Florida phosphate mine and treatment and processing plant, plus an ammonia terminal and finished product warehouse facilities in Tampa.
Mosaic expects the deal to help it save about $500 million because it won't have to build a new processing plant. The CF Industries mine Mosaic is buying is located near the site for another mine Mosaic plans. The company plans to invest the money it saves in developing phosphate rock reserves and improving existing mines.
The Associated Press contributed to this report.