Nutrien

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Nutrien Ltd.
TypePublic company
TSXNTR
S&P/TSX 60 Component
IndustryAgriculture
PredecessorsPotashCorp, Agrium
Founded2018
HeadquartersSaskatoon, Saskatchewan, Canada
Number of locations
1200 stores (2018)
Area served
Worldwide
Key people
Mayo Schmidt (President & CEO),[1] and Russ Girling (Executive Chair Will Lefebvre (Peon)
Revenue$20.908 billion (2020) [2]
$902 million (2020) [3]
Decrease $459 million (2020) [4]
Total assetsIncrease $47.192 billion (2020) [5]
Total equityDecrease $22.365 billion (2020) [6]
Number of employees
23,100 (2020) [7]
SubsidiariesAgrium, PotashCorp (PCS), Agrichem do Brasil S.A., Agrible, Inc., Actagro, Grupo TEC AGRO,
WebsiteOfficial website

Nutrien is a Canadian fertilizer company based in Saskatoon, Saskatchewan. It is the largest producer of potash and the third largest producer of nitrogen fertilizer in the world.[8] It has 1,500 retail stores and more than 23,100 employees.[9] It is listed on the Toronto Stock Exchange (symbol NTR) and New York Stock Exchange (symbol NTR), with a market capitalization of $34 billion as of January 2018.[9] It was formed through the merger of PotashCorp and Agrium, in a transaction that closed on January 1, 2018.[10]

Merger[edit]

PotashCorp and Agrium first proposed merging in September 2016. The merger was suggested in the context of low fertilizer prices, leading to the hope that a larger company will be better able to increase prices.[8] The new company also hopes to reduce costs through consolidation; it estimates that it will be able to decrease costs by $500 million USD.[11]

The transaction was originally expected to close in mid-2017, but was delayed to January 2018 because of regulatory hurdles; final regulatory approval from the United States Federal Trade Commission (FTC) was only received in December 2017. Based on the terms of the merger, former PotashCorp shareholders were given 52% of Nutrien, while Agrium shareholders were given 48%.[11] Agrium CEO Charles Magro became CEO of the new company, while PotashCorp CEO Jochen Tilk became Executive Chair.[9] Nutrien is based in Saskatoon, the former headquarters of PotashCorp, but it will maintain corporate offices in Calgary, the former headquarters of Agrium.

Acquisitions and divestments[edit]

In May 2018, Nurtien announced it would sell to Tianqi Lithium a 24% stake in the Chilean mining company Sociedad Química y Minera (SQM) for approximately $4.1 billion.[12][13] Tianqi was to purchase 62.5 million SQM A shares for $65 each. Nutrien needed to satisfy the Chinese and Indian regulators because of concerns it would corner the potash market.[13][14][15] The sale closed on 5 December 2018.[16]

In February 2019 Nutrien, through its Australian subsidiary Landmark Operations[17] announced the proposed acquisition of Australian rural retail organization RuralCo.[18] The acquisition was finalized on October 1, 2019, after which Ruralco was delisted from the ASX.[19] After this acquisition, Nutrien now supplies 650 rural merchandise stores in Australia, or approximately 45% of all rural merchandise stores in Australia. [20]

Competition[edit]

Nutrien's main competitors include other potash, phosphate and nitrogen producers, such as The Mosaic Company, Yara International ASA, CF Industries Holdings Inc and K+S AG.

Carbon footprint[edit]

Nutrien reported Total CO2e emissions (Direct + Indirect) for 31 December 2020 at 13,160 Kt (-220 /-1.6% y-o-y).[21]

Nutrien's Total CO2e emissions (Direct + Indirect) (in kilotonnes)
Dec 2018 Dec 2019 Dec 2020
14,240[22] 13,380[23] 13,160[21]

References[edit]

  1. ^ "Nutrien Announces Appointment of Mayo Schmidt as President and CEO".
  2. ^ "Nutrien revenue 2020".
  3. ^ "Nutrien Operating Income 2006-2021 | NTR".
  4. ^ "Nutrien Net Income 2006-2021 | NTR".
  5. ^ "Nutrien Total Assets 2006-2021 | NTR".
  6. ^ "Nutrien Balance Sheet 2005-2021 | NTR".
  7. ^ "Nutrien: Number of Employees 2006-2021 | NTR".
  8. ^ a b "Potash and Agrium plan to merge and create $36B US agricultural colossus". CBC News. Retrieved 2018-01-03.
  9. ^ a b c "Nutrien shares start trading on TSX and NYSE after Agrium, PotashCorp merger". Global News. Retrieved 2018-01-03.
  10. ^ "Merger of PotashCorp and Agrium finalized as shares in Nutrien start trading". CBC News. Retrieved 2018-01-03.
  11. ^ a b "Agrium, PotashCorp merger will 'impact the entire industry,' including thousands of farmers: prof". CBC News. Retrieved 2018-01-03.
  12. ^ Rashi, Akshat (May 30, 2018). "One Chinese company now controls most of the metal needed to make the world's advanced batteries". Quarts.
  13. ^ a b Swamynathan, Yashaswini; Nicholson, Marcy (May 17, 2018). "China's Tianqi Lithium to buy a quarter of Chile's SQM for $4.1 billion". Reuters. China’s Tianqi Lithium Corp (002466.SZ) said on Thursday it will buy nearly a quarter of Chilean lithium producer SQM SQMa.SN for $4.1 billion, gaining it coveted access to a key ingredient in rechargeable batteries that power mobile phones and electric cars.
  14. ^ Epstein, Evan (10 October 2018). "Proposed Settlement Does Not Solve U.S. Antitrust & Governance Concerns in $4.1B Lithium Saga". Medium.
  15. ^ Kreisle, Nicholas (July 2020). "Price Effects from the Merger of Agricultural Fertilizer Manufacturers Agrium and PotashCorp" (PDF) (345). US Federal trade Commission.
  16. ^ "Nutrien Closes the Sale of SQM A Shares to Tianqi Lithium". Berkshire Hathaway. Business Wire, Inc. 5 December 2018.
  17. ^ https://www.landmark.com.au/ Landmark Operations
  18. ^ https://www.asx.com.au/asxpdf/20190227/pdf/4430v0cv3wwr8q.pdf (ASX announcement)
  19. ^ https://www.asx.com.au/asxpdf/20191001/pdf/4492ps2s1b8sfg.pdf (ASX announcement)
  20. ^ https://www.accc.gov.au/media-release/concerns-about-landmark%E2%80%99s-proposed-acquisition-of-ruralco ACCC announcement
  21. ^ a b "Nutrien's Sustainability Report for 2020Q4". Archived from the original (PDF) on June 4, 2021.
  22. ^ "Nutrien's Sustainability Report for 2020Q4". Archived from the original (PDF) on June 4, 2021.
  23. ^ "Nutrien's Sustainability Report for 2020Q4". Archived from the original (PDF) on June 4, 2021.

External links[edit]