Mosaic Co., the world’s largest phosphate-fertilizer producer, agreed to acquire a mine and other assets from CF Industries Inc. for $1.2 billion to boost its output of the crop nutrient in Florida.

Mosaic will also pay $200 million to fund CF’s asset retirement obligation escrow, Plymouth, Minn.-based Mosaic said in a statement today. The deal will add about 30 cents a share to Mosaic’s 2015 earnings, excluding any debt financing costs and increase in the number of the company’s shares, it said.

The transaction will give Mosaic the 22,000-acre (8,903- hectare) South Pasture phosphate mine and beneficiation plant, a factory in Plant City, and an ammonia terminal and finished- product warehouse facilities in Tampa. Mosaic said it will save about $500 million because the deal means it will no longer have to build a processing plant for its new Ona mine, which like CF’s South Pasture mine is located in Florida’s Hardee County.

The CF assets currently produce about 1.8 million metric tons a year of phosphate fertilizer, while Mosaic produces 8.2 million tons, according to the statement.

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