Mosaic Announces Agreement to Sell Brazilian Potash Mining Operations to VL Mineração

The Mosaic Company (NYSE:MOS) is among the 13 Best Magnesium Stocks to Invest in Now. The Mosaic Company (NYSE:MOS) has decided to sell Mosaic Potassio Mineração Ltda, which operates the Taquari-Vassouras potash mine in Sergipe, Brazil, to VL Mineração Ltda. The arrangement includes up to $27 million in cash payments, $12 million at closure, $10 million one year subsequently, and $5 million over six years, as well as the transfer of $22 million in asset retirement obligations. The deal is anticipated to close by the end of 2025, subject to clearance by Brazil’s CADE. ​​The Mosaic Company (NYSE:MOS) will lose between $50 and $70 million in books.

Mosaic Announces Agreement to Sell Brazilian Potash Mining Operations to VL Mineração

Photo by Dominik Vanyi on Unsplash

The firm calculated that more than $25 million in new funding will be needed to maintain Taquari operations, which it intends to reallocate to possibilities with higher returns. According to CEO Bruce Bodine, The Mosaic Company (NYSE:MOS)’s strategy of concentrating on core industry segments with stronger competitive advantages falls in line with the transaction. Daniel Moreira, CEO of VL Holding, said the acquisition will strengthen Brazil’s domestic potash supply for agriculture, guarantee ongoing investment, and maintain jobs. It is one of the Best Magnesium Stocks.

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