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Nutrien Agrees to Divest 50% Stake in Profertil for $600 Million
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Key Takeaways
Nutrien will divest 50% of Profertil for $600M, with Adecoagro and ACA set to acquire the stake.
Proceeds will support growth investments, share buybacks and debt reduction.
The deal, expected to close by 2025-end, includes a 90-day right of first refusal for the other holder.
Nutrien Ltd. (NTR - Free Report) has agreed to sell its 50% equity interest in Profertil S.A., an Argentina-based nitrogen producer. The stake will be jointly acquired by Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda. Nutrien’s 50% stake is expected to be priced at around $600 million on a pre-tax basis.
The transaction is expected to help Nutrien focus more effectively on its core competencies, assets and geographies. The initiative is aligned with Nutrien’s long-term strategy as the proceeds from this divestiture will be targeted toward growth investments, share repurchases and debt reduction.
The transaction is expected to close before the end of 2025, subject to customary closing conditions. As per the agreement, the other 50% equity holder has a 90-day right of first refusal to acquire Nutrien’s stake on the same terms and conditions.
According to the proportion of Nutrien’s holding, the Nitrogen operating segment earnings from Profertil recorded approximately $60 million over the previous four quarters. The sale of Profertil will further enhance Nutrien’s quality of earnings and cash flow.
NTR stock has gained 32.3% over the past year compared with the industry’s 26.9% rise.
The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 36.7% in the past year.
The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 86.9% in the past year.
The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM shares have jumped 355.3% in the past year.
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Nutrien Agrees to Divest 50% Stake in Profertil for $600 Million
Key Takeaways
Nutrien Ltd. (NTR - Free Report) has agreed to sell its 50% equity interest in Profertil S.A., an Argentina-based nitrogen producer. The stake will be jointly acquired by Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda. Nutrien’s 50% stake is expected to be priced at around $600 million on a pre-tax basis.
The transaction is expected to help Nutrien focus more effectively on its core competencies, assets and geographies. The initiative is aligned with Nutrien’s long-term strategy as the proceeds from this divestiture will be targeted toward growth investments, share repurchases and debt reduction.
The transaction is expected to close before the end of 2025, subject to customary closing conditions. As per the agreement, the other 50% equity holder has a 90-day right of first refusal to acquire Nutrien’s stake on the same terms and conditions.
According to the proportion of Nutrien’s holding, the Nitrogen operating segment earnings from Profertil recorded approximately $60 million over the previous four quarters. The sale of Profertil will further enhance Nutrien’s quality of earnings and cash flow.
NTR stock has gained 32.3% over the past year compared with the industry’s 26.9% rise.
Image Source: Zacks Investment Research
NTR’s Zacks Rank & Key Picks
NTR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are The Mosaic Company (MOS - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . MOS and CRS sport a Zacks Rank #1 (Strong Buy) each at present, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 36.7% in the past year.
The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 86.9% in the past year.
The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM shares have jumped 355.3% in the past year.