NEW YORK (TheStreet) -- Mosaic (MOS - Get Report) was gaining 0.7% to $47.79 Tuesday after announcing that it will acquire Archer Daniels Midland's (ADM - Get Report) Brazil and Paraguay fertilizer distribution business.
ADM was falling 1.5% to $44.00.
Mosaic will pay ADM $350 million for the business. As part of the deal Mosaic will acquire four blending and warehousing facilities in Brazil, one in Paraguay, and additional warehousing and logistics service capabilities.
In addition to the acquisition the two companies reached a five-year supply agreement for Msaic to provide fertilizer to ADM in Brazil and Paraguay.
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"The addition of ADM's fertilizer distribution business in Brazil and Paraguay facilitates two critical strategic priorities for Mosaic. It enhances our global growth strategy and expands our market access," Mosaic president and CEO James T. Prokopanko said in a press release. "This acquisition provides a critical distribution platform in one of the world's fastest growing agricultural regions, and it complements our other recent strategic initiatives, including our joint venture in Saudi Arabia, our recent acquisition of CF Industries' phosphate business and our ongoing potash expansion program."