Brazil's Vale has taken to $5.7bn its spending spree on domestic phosphate assets, adding US fertilizer giant Mosaic to its tally of Western competitors selling down or selling out.

Vale has agreed to pay $1.03bn to buy Mosaic out of both Fosfertil, a phosphate group listed in Sao Paolo, and of holding company Fertifos.

The deal takes to $4.01bn Vale's outlay to acquire nearly 79% of Fosfertil, since two weeks ago striking a deal to buy out US oilseeds giant Bunge, the phosphate group's biggest shareholder.

Yara, the Norwegian nitrogen giant has also agreed to sell out to Vale, providing the Bunge deal is sealed.

Additional assets 

Vale added that it had also taken out an option to pay $50m for Mosaic's fertilizer production and bagging business Cubatao, in south eastern Brazil, taking to more than $1.7bn the bill for other phosphate assets on its shopping list.

The group is also buying a collection of other phosphate production assets from Bunge, and Yara's 50% stake in Brazil's Anitapolis phosphate mine, which is still under development.

Mosaic said Thursday's deal would have "no impact" on its remaining fertilizer blending and distribution businesses in Brazil, nor on phosphate production and port operations in the state of Parana.

Local hero

The exit of the Western majors was likely to be welcomed of the Brazilian government, which has been "very vocal" in support Vale's domestic expansion, analysts at Sterne, Agee & Leach said.

"We believe that the Brazilian government strongly preferred to see Vale control these assets," the US broker said, terming the deal "not ideal, but probably the best option" for Mosaic.

The sale opened the door for a special dividend from Mosaic later in the year, Sterne Agee added, estimating the group's after-tax proceeds from the disposals at $800m.

Mosaic shares closed up 1.7% higher at $58.42 in New York.

In Sao Paolo, Vale shares ended 1.9% higher at Real$43.00.