The Globe and Mail reports in its Friday, Nov. 7, edition that Nutrien chief executive officer Ken Seitz says a strategic review of the company's phosphate division is part of an "unrelenting" focus on cash flow.
The Globe's Kate Helmore writes that Nutrien announced a review of its phosphate business in its third quarter earnings. Nutrien has two mines and four upgrade facilities in the U.S. RBC analysts say the division is valued at $2.4-billion (U.S.).
It is one of four divisions within the company and -- should it sell -- this would be the largest divestiture since Nutrien announced its new strategic plan in June, 2024.
Mr. Seitz says Nutrien is not necessarily poised to sell. The review will also consider reconfiguring operations and strategic partnerships. Mr. Seitz says the timing is just right for the phosphate division to hit the market. On Friday, the White House will publish an expanded critical minerals list, which phosphate has been added to. Mr. Seitz says this should be a boom for the phosphate division's price while Nutrien focuses on shareholder returns and slashing capital expenses. He says the phosphate business is no longer necessarily a core asset to the company.
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