The complex, three-step deal would also help Cargill to pay down debt as volatile agriculture markets put pressure on the balance sheets of trading companies. Cargill earned $2.6bn in the year ended May 2010 on revenues of $107.9bn.

For Mosaic, a phosphates and potash seller, a deal could lure bidders.

The most obvious candidate is BHP Billiton, which has made clear it still wants to expand in the potash market after its failed $39bn hostile takeover attempt of Potash Corporation of Saskatchewan. Jim Prokopanko, Mosaic chief executive, said: "The world is not going to need less food. We have a clear strategy to capitalise on this growth opportunity."

Eoin Treacy's view BHP Billiton's bid for Potash Corp of Saskatchewan spurred investor interest in the fertiliser sector. While that bid was eventually blocked by the Canadian government, it succeeded in alerting investors to potential M&A activity and has helped to support prices over the last few months.

Last Thursday, Vale rejected claims that it may be a potential buyer of Cargill's stake in Mosaic. As a result share prices across the sector took a plunge with most posting large downward dynamics. However, Vale's announcement does not derail the possibility that a number of companies such as Mosaic, Agrium, Intrepid Potash, Western Potash and K+S could be acquisition targets for BHP Billiton or other large miners. Yara International shares a similar pattern with the above shares, but is more than 42% owned by the Norwegian government which makes it less likely to be taken over.