Cargill to divest Mosaic
Sale will allow distribution of proceeds to family trusts
The Mosaic Company, which is 64% owned by Cargill Inc., contributed 44% of the earnings of the holding company. Sale of the Cargill stake in Mosaic will allow distribution of proceeds to family trusts.
Potential buyers include multinationals BHP and Vale. A proposed sale of Potash to BHP was blocked by the government of Canada in late 2010 as being contrary to the national interest.
It is expected that fertilizer demand will increase in 2011 as farmers can justify higher addition rates of fertilizer and have extending planting area based on the escalation in the value of coarse grains and oil seeds.