Mosaic/CF Industries

The Situation

In October 2013, Mosaic Co. announced its acquisition of the phosphate business of fellow US fertilizer producer CF Industries Holdings Inc. Before the deal, Mosaic accounted for more than 50 percent of North American sales of diammonium and monoammonium phosphates, and the companies’ combined North American shares would be approximately 75 percent post-merger. 

NERA's Role

A NERA team led by Dr. Sumanth Addanki was retained by counsel for Mosaic to analyze the extent to which international suppliers could and would increase imports in order to thwart any attempt by the merged party to increase prices in North America. Dr. Addanki and his team used econometric analysis to show that net exports responded quickly to changes in the domestic price (relative to the foreign price). The analysis demonstrated that the appropriate relevant market was not the North American market; international suppliers can and do respond quickly to any relative price increase.

The Result

The Department of Justice cleared the merger in January 2014 without issuing a Second Request.