Nutrien, the world’s biggest fertilizer company, did not disclose financial terms for the deal, but said it would add roughly US$400 million in sales and expand its reach in Brazil to 13 states from five. Since 2020, Nutrien has made five acquisitions in Brazil. The company said its sales across Latin America – which also includes operations in Argentina, Chile and Uruguay – are now predicted to hit US$2.2 billion. Brazil has emerged as one of Nutrien’s most important sources of international growth in recent years. The expansion in Nutrien’s retail unit comes about 15 months after it terminated chief executive Chuck Magro, who had wanted to sell the business. The Globe and Mail reported last year that Mr. Magro planned to unload the retail segment to raise money for a joint venture on the Jansen potash project in Saskatchewan with BHP Group Ltd. BHP later forged ahead on its own.
Nutrien shares spiked to a record high, as analysts predicted blockbuster profits for the company amid pressures in the global food supply. Ukraine, known as the breadbasket of Europe, is a major producer of both wheat and corn. In addition, sanctions against Moscow imposed by the European Union, Britain, Canada and the United States crimped exports of both potash and grains out of Russia. Last month, Nutrien said it would boost its annual potash production to 18 million tonnes, up more than 20 per cent, to help fill the void in the fertilizer market. However, over the past few months, the supply shortfall has eased more quickly than expected, with Russia able to find willing buyers for its grains and fertilizers despite the sanctions – namely, Middle Eastern countries, China, India and Brazil.