Morningstar | Nutrien Announces Proposed Sale of Arab Potash Stake
Nutrien has announced plans to sell its stake in Arab Potash, or APC, to SDIC Mining Investment for gross proceeds of roughly $502 million. The proposed sale is the third and final equity investment (in addition to SQM and Israel Chemical) that Nutrien was required to divest to obtain regulatory approval for the merger of PotashCorp and Agrium that created Nutrien. With the APC deal, Nutrien remains on track to receive just under $5 billion in net proceeds from the three divestitures after taxes and fees. Because our fair value estimates already include the net proceeds, we maintain our U.S.-dollar fair value of $58 per share for Nutrien. Our Canadian-dollar fair value estimate increases to CAD 76 per share from CAD 74 because of a strengthening of the dollar versus the loonie since our last update. Our narrow moat rating remains intact.Nutrien's proposed divestiture of SQM's Class A shares to Tianqi Lithium is under regulatory review in Chile. As we outlined in our May 17 note, we think the deal will ultimately receive regulatory approval, and we maintain a 75% probability that the transaction will close.
For more information, see our May 17 note "Nutrien Announces Proposed SQM Equity Stake Sale to Tianqi Lithium."
Nutrien Ltd is Canada-based crop nutrient producer and distributer of potash, nitrogen and phosphate products for agricultural, industrial and feed customers worldwide. The Company is focused on retail, potash, nitrogen and phosphate mining and processing operations. The Company's retail operations serve growers in a number of countries across the United States, Canada, South Africa, Australia and South America. The Company operates six potash mines in Saskatchewan and has a mine in New Brunswick in care-and-maintenance mode. The Company operates integrated phosphate mining and processing facilities, as well as a number of smaller upgrading plants in the United States.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.