Nutrien Ltd. has entered an agreement to sell its 50% stake in Argentina's nitrogen producer Profertil S.A. to Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda for approximately USD 600 million.

Target Information

Nutrien Ltd. (TSX and NYSE: NTR) has announced its decision to sell its 50 percent equity stake in Profertil S.A., a nitrogen production company based in Argentina. The joint acquisition agreement is with Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda, with an expected purchase price of approximately USD 600 million on a pre-tax basis.

Nutrien's President and CEO, Ken Seitz, emphasized that this transaction aligns with the company's strategy to focus on its core assets and geographical locations that support its long-term vision. Proceeds from the sale are intended to be redirected towards targeted growth investments, share buybacks, and debt reduction efforts, ultimately expected to improve Nutrien’s earnings quality and enhance future free cash flow.

Industry Overview in Argentina

The agricultural sector in Argentina plays a crucial role in the country’s economy, characterized by its diverse crop production and high levels of agricultural expo