January 15, 2014 / 10:02 PM / 4 years ago

U.S. Justice Department clears Mosaic-CF Industries deal

(Reuters) - The U.S. Department of Justice has approved Mosaic Co’s (MOS.N) $1.4 billion purchase of CF Industries’ (CF.N) Florida phosphate business, Mosaic said on Wednesday.

The deal, which still requires other regulatory approvals, gives Mosaic, the world’s biggest producer of phosphate fertilizer products, a bigger hold on North American sales, and some analysts speculated that it may raise competition concerns.

The price includes $200 million to cover the closure and long-term care of phosphogypsum stacks, a radioactive by-product of phosphate production, under CF’s current Florida operations.

Minnesota-based Mosaic, which operates other phosphate facilities nearby, would acquire the South Pasture phosphate mine and plant, a phosphate manufacturing plant and ammonia terminal and warehouse facilities.

Once the deal closes, Illinois-based CF will focus on nitrogen production.

Mosaic and CF shares dipped slightly after normal trading hours.

Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Nick Zieminski

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