Fertilizer M&A deals spring to life
Posted 11 April 2023
Chris Lawson
“After years of supressed deal flow and merger & acquisition (M&A) activity, fertilizer companies are now seeing a flurry of transactions. Vastly improved cashflow and a more positive long-term outlook for the industry underpins this. In this Insight, we analyse the recent and upcoming deals…
A key point of difference between the US nitrogen and phosphate industries is the producer structure. US phosphate producers have consolidated over the past 20 years, with only four domestic producers remaining – Mosaic, Nutrien, Simplot and ITAFOS. ITAFOS is the smallest of the four players, … The consolidated nature of the phosphate market within the US may restrict current players from bidding…
A risk is the pending approval of the proposed Husky 1 North Dry Ridge Phosphate Mine, …
The ITAFOS strategic review acts somewhat as a litmus test for the phosphate industry. If the company attracts high and multiple bids, it will be indicative of a new-found confidence in a market that suffered a severe downturn and consolidation in 2019/2020. Alternatively, another private equity firm, similar to the current majority owners of ITAFOS, may take the company on.”
The risk is now gone.