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Nutrien engaging with suitors for SQM, Arab Potash stakes

Nutrien Ltd. CEO Chuck Magro said the company is actively engaged with prospective buyers for its interests in lithium producer Sociedad Quimica y Minera de Chile SA and Arab Potash Co. Plc, Reuters reported Feb. 7.

The stake sales is in line with regulatory requirements as part of the merger between Agrium Inc. and Potash Corp. of Saskatchewan, which created Nutrien. Nutrien owns 32% stake in SQM and around 28% in Arab Potash.

"We have buyers for both," Magro said, declining to confirm how many parties are involved in the process but added that the suitors are "at stages they normally go through to look at the assets and do their due diligence."

The company might sell its interest in Arab Potash in the second quarter, CFO Wayne Brownlee said during a call with analysts. Meanwhile, it is targeting to off-load the SQM stake sometime this year.

Brownlee added that outlining the exact timing for each sale is difficult because of the role of regulators in approving deals. According to an estimate by the Bank of Montreal, the company can net around US$3.8 million from the sale of the two stakes.

Meanwhile, Raef Sully, the president of Nutrien's potash business, said the company wants to shift production to its lowest-cost facilities and might review its options in the second half. The company, which operates six Canadian potash mines, said it remains open to all options, including closing higher-cost mines.