The Mosaic Company (MOS) Divests Potash Operation in New Mexico for $30M to Focus on Canada Operations

The Mosaic Company (NYSE:MOS) is one of the best fertilizer stocks to invest in. On December 22, The Mosaic Company (NYSE:MOS) entered into a definitive agreement to sell Mosaic Potash Carlsbad to International Minerals Carlsbad for $30 million. The sale covers the operations, assets, and liabilities of the Mosaic mine in Carlsbad, New Mexico.

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Under the terms of the agreement, the company is to receive an initial cash purchase price of $20 million and deferred cash consideration of $10 million, payable in three equal annual installments beginning in 2029. The transaction is to close in the first half of 2026 and record non-cash asset impairment in the fourth quarter.

Following the sale, The Mosaic Company will focus on operations in Saskatchewan, Canada, to enhance potash production, which is expected to generate strong returns. The divestment also aligns with the company’s broader strategy, which focuses on streamlining its asset base and concentrating potash production on higher-return operations.

The sale comes as Wall Street analysts remain bullish on the stock, with a consensus Moderate Buy rating and a $33 price target, implying 39% upside. Meanwhile, on December 18, Mizuho analyst Edlain Rodriguez lowered the stock’s price target to $28 from $31 and reiterated a Neutral rating. According to the analyst, increased exports out of China are weighing significantly on the most basic chemical markets.

The Mosaic Company (NYSE:MOS) is a global leader in crop nutrition, mining, producing, and distributing essential fertilizer nutrients, such as potash and phosphate, to help farmers worldwide increase crop yields and food production.

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Disclosure: None. This article is originally published at Insider Monkey.