The Mosaic CompanyNYSE
Thu, Oct. 13, 4:39 PM
Thu, Oct. 6, 8:18 AM
- Vale's (NYSE:VALE) plan to dispose of fertilizer assets remains on track despite a request last week by Brazil's state development bank to analyze the deal more carefully, Reuters reports.
- Terms of the deal, which involves the sale of ~$3.6B in assets to Mosaic (NYSE:MOS) and potentially certain other operations with Norway's Yara International (OTCPK:YARIY), are unlikely to change significantly, according to the report.
- The bank reportedly pushed back the vote on the fertilizer deal at a Vale board meeting last Thursday.
Thu, Sep. 29, 2:45 PM
- Mosaic (MOS -0.1%) says the testing of nine wells near a sinkhole at its fertilizer plant in Mulberry, Fla., site of a massive leak of contaminated water, shows that water meets safe drinking standards for radioactivity and damage has not spread beyond the site.
- MOS says samples were collected from wells within 3-5 miles of the facility by environmental consulting firm ECT, and a third-party lab conducted tests measuring radioactivity in the water and found that they meet state and federal standards.
- Critics say that just because polluted water has not yet turned up off site, it does not mean it will not happen in the future.
Wed, Sep. 21, 11:58 AM
- Vale (VALE +4.1%) shoots higher on speculation that it would announce the sale of 75% of a fertilizers unit to Mosaic (MOS +0.9%) for ~$3B, perhaps as early as today.
- An O Globo newspaper online blog also said a sale of the remaining 25% of the unit was being negotiated with an undisclosed bidder for ~$1B.
- Based on information from the O Globo blog, MOS would pay the equivalent of 15x the unit's operational earnings, a "very accretive multiple," according to Banco BTG Pactual.
Tue, Sep. 20, 5:26 PM
- A leak of contaminated water through a sinkhole at a Mosaic (NYSE:MOS) fertilizer facility in Florida will cost $20M-$50M to fix, CFO Rich Mack says.
- The sinkhole damaged the liner system at the base of a stack of a radioactive waste created as a byproduct from the production of phosphate, which caused a retention pond on top to drain 215M gallons of contaminated water into the ground.
- The incident will not materially affect phosphate production at the facility, Mack says.
Tue, Sep. 20, 12:41 PM
- Weakness in the crop and fertilizer markets may not have hit rock bottom yet, meaning that now is the right time to merge leading farm input suppliers, Agrium (AGU +1.7%) CEO Chuck Magro says in making a pitch to skeptical investors for a merger with Potash Corp. (POT +0.7%)
- "Are we at the bottom yet? We don't know. We know there's more upside than downside. This is the time in the cycle where it makes sense to do mergers and acquisitions," Magro says.
- The deal would combine POT's crop nutrient production capacity with AGU's farm retail network, and some AGU investors worry that the merger would leave them with greater exposure to the weak potash market.
- U.S. prices of potash, urea and phosphate fertilizers, as well as corn and soybean values, are well below five- and 10-year averages, the two companies say in a joint presentation at a Scotiabank investor conference in Toronto.
- Rival fertilizer producer Mosaic (MOS +0.3%), which would be dwarfed by the merged AGU-POT, also is considering acquisition options, CFO Rich Mack says at the conference.
Fri, Sep. 16, 11:57 AM
- Mosaic (MOS -0.6%) says a large sinkhole opened at its phosphate fertilizer facility in Mulberry, Fla., and leaked radioactive water.
- MOS says the sinkhole damaged the liner system in the retention pond of a phosphogypsum stack, causing the pond on top to drain; seepage continued and the sinkhole has reached Florida's aquifer.
- MOS says the incident released 215M gallons of "slightly radioactive" water into the aquifer.
Mon, Sep. 12, 6:10 PM
- Potash Corp. (NYSE:POT) and Agrium (NYSE:AGU) both finished lower in today's trade after Canada’s two largest fertilizer producers agreed to an all-share merger to create a company that would control nearly two-thirds of North American potash capacity and almost one-third of phosphate and nitrogen capacity there; POT closed -1.2% while AGU finished -2.7%.
- AGU CEO Chuck Magro, who will be CEO of the merged company, and POT CEO Jochen Tilk, who will become executive chairman, say they are confident that the deal will receive regulators' approval as proposed, without the need for divestitures, but others are skeptical.
- "This deal has some real antitrust concerns," says former U.S. Department of Justice official Seth Bloom, who adds that an antitrust review is unlikely before January, when a new U.S. president takes office.
- The merger would leave Mosaic (NYSE:MOS) as North America's only other major potash producer; Bloomberg reports that AGU held early stage deal talks with MOS, but the talks fizzled out earlier this year and did not overlap with negotiations with POT.
Tue, Aug. 30, 2:03 PM
Tue, Aug. 30, 10:21 AM
- Potash Corp. (POT +12.3%) and Agrium (AGU +6.6%) resume trading after a halt for volatility following a Bloomberg report that the companies are in advanced merger talks.
- A combination reportedly could be announced as soon as next week, although no final decisions have been made.
- Related stocks also are ticking higher: MOS +7.3%, CF +4.4%, IPI +13.7%, SQM +3.1%, UAN +3.3%, TNH +2.3%, ICL +3.9%.
Thu, Aug. 25, 4:37 PM
Wed, Aug. 17, 9:54 AM
- Although potash producers look to be taking steps to better align production with demand, a lower pricing outlook means lower estimates, says Susquehanna's Don Carson, cutting Mosaic (MOS -1.1%) to Neutral from Positive.
- His adjusted EPS estimate for 2017 is cut to $1.10 from $1.80.
- He maintains Potash (POT -1%) at Neutral, though raising the PT to $16 from $14. 2017 EPS is now seen at $0.85 vs. $0.95 previously.
Thu, Aug. 11, 12:15 PM
- North American potash producers trade in mixed fashion after Germany's K+S (OTCQX:KPLUY) warned that it expects significantly weaker results for the year, particularly due to its Potash and Magnesium Products unit.
- K+S, Europe’s biggest potash producer, forecasts full-year 2016 EBITDA of €500M-€600M, compared with €1.1B last year.
- K+S’s plan to cut costs and focus on growing the specialty fertilizer and salt businesses has not compensated for falling potash prices, and the company also has been hurt with by worse than expected factory outages and a decline in North American demand for de-icing products made with salt.
- At midday: POT -0.2%, MOS -0.1%, AGU +0.3%, IPI +0.7%.
Fri, Aug. 5, 4:42 PM
- Vale (NYSE:VALE) is near an agreement to sell its entire fertilizer business for as much as $3B, with Mosaic (NYSE:MOS) in discussions to buy the operations as it is advised by JPMorgan Chase, Bloomberg reports.
- A deal for Vale's potash and phosphate assets, which includes mines in Brazil and Peru and projects in Canada and Mozambique, likely will be reached in the coming weeks, according to the report.
- While the unit generated $567M in adjusted EBITDA last year, it posted just $102M in H1 of this year as prices fell and the Brazilian currency strengthened; if current performance was annualized, the unit would be worth only ~$1B, according to UBS analyst Andreas Bokkenheuser.
Thu, Aug. 4, 10:22 AM
- CF Industries (CF -13.3%) falls as much as 14% at the open for its biggest one-day decline in eight years, after Q2 earnings fell 87% Y/Y to come in far below expectations.
- CF says Q2 sales fell to $1.13B from $1.31B a year ago due to lower average selling prices across all segments, hurt by continued oversupply of nitrogen driven by global nitrogen capacity additions, but sales volume of more than 4.5M product tons achieved a quarterly record.
- CF says the demand outlook for the 2017 fertilizer season is positive, but abundant nitrogen supply will continue to pressure global pricing as new ammonia, urea and UAN production come on-line in H2 2016.
- CF also says it is suspending its share buyback program to preserve cash.
- Fertilizer peer Agrium (AGU -2.2%) also is lower following in-line Q2 earnings; the company issues downside guidance for FY 2016, now seeing EPS of $5.00-$5.30 vs. $5.38 analyst consensus estimate and down from prior guidance of $5.25-$6.25, due to an expected weak pricing environment for all nutrients.
- Also: POT -2.4%, MOS -3.8%, UAN -1.3%.
Tue, Aug. 2, 6:51 AM