J.R. Simplot Co. CEO Bill Whitacre has announced plans to retire, effective Aug. 31, 2018, after an 18-year career with the company and nine as CEO. The company expects to select its next CEO from internal candidates.
All posts by Steve Seay
Nutrien Rebrands Retail
Nutrien Ltd., Saskatoon, announced April 5 the launch of its newly branded retail business, Nutrien Ag Solutions™. The name Nutrien Ag Solutions™ will align the retail businesses across the globe.
“Our goal is to create a consistent global agriculture brand that represents value and productivity for our customers,” said Chuck Magro, Nutrien president and CEO. “As the leading provider of crop inputs, services and solutions, Nutrien Ag Solutions™ will continue to work side by side with our grower customers to maximize crop production and their returns.”
The name change will apply to all offices and operating facilities in North and South America that hold the names: Crop Production Services, Agroservicios Pampeanos and Utilfertil. The official change to Nutrien Ag Solutions™ will begin on July 1, 2018.
“We’re extremely proud of the retail organization we’ve built,” said Mike Frank, president of Nutrien Retail. “To ensure we meet our grower customers’ evolving needs, we will continue to partner with key suppliers and to invest in best-in class technology, platforms and tools. We will have more news on our enhanced digital platform and other investments in the coming months.”
CHS 2Q Income Up on Tax Benefit
CHS Inc., St. Paul, Minn., reported a significant surge in net income attributable to the cooperative for the second-quarter ending Feb. 28, 2018 due to a significant tax benefit. Net income was $166.7 million on revenues of $6.9 billion versus the year-ago $14.6 million and $7.3 billion, respectively.
Absent the tax benefit, CHS segments were all reporting lower income, with the Agriculture segment increasing its losses to $30.9 million from the year-ago loss of $9.3 million. Nitrogen Production was down at $4.5 million from $5.5 million and Energy declined to $9.9 million from $16.6 million.
“The global environment for our businesses serving agriculture remains challenged and we continue to drive towards our priorities of better efficiency, strengthening relationships, and a more focused business portfolio,” said CHS President and CEO Jay Debertin. “We have more work to do and we are seeing improvement that will make us a stronger company.” He said CHS made meaningful progress in the first half as it continues to position for high performance.
IPL Calls Urea Tender
Indian Potash Ltd, called a tender for urea to close April 10, with a ship-by date of May 28. Rumors of a possible tender call started last week. Sources at the time expected the tender to be called by April 10 at the latest.
The last tender by MMTC that closed Feb. 27 brought in about 650,000 mt. Sources said that was enough to get the season started, but that another tender would be needed in early April at the latest to ensure a plentiful supply of urea for the current season.
Tampa NH3 Off for April
Tampa anhydrous ammonia for April has closed at $275/mt CFR, down $30/mt from the March $305/mt CFR benchmark.
Akzo Nobel to Sell Specialty Chemicals to Carlyle & GIC
The Netherlands Akzo Nobel has announced the sale of 100 percent of its Specialty Chemicals business to U.S. private equity Carlyle Group and Singapore’s GIC for €10.1 billion ($12.5 billion), including debt.
“This is the outcome of a thorough dual-track process during which the boards of Akzo Nobel carefully considered both a legal demerger and a private sale,” the Dutch group said. “The board of management and supervisory board concluded that a private sale to The Carlyle Group and GIC is in the best interests of Akzo Nobel, Specialty Chemicals and its respective stakeholders, including employees, shareholders and customers.”
The net proceeds of the deal are expected to amount to €7.5 billion, Akzo Nobel said, with the bulk going to shareholders. The transaction creates two focused and high performing businesses – Paints and Coatings, and Specialty Chemicals. The Dutch group had revealed in March 2017 that it was reviewing strategic options for the separation of its specialty chemicals business, shortly after rejecting a second takeover bid for the entire group by U.S. rival PPG Industries, and was seen as a move to thwart PPG (GM March 24, 2017).
“The Carlyle Group has a global presence and the financial capacity to enable the Specialty Chemicals business to achieve its full potential. Carlyle has extensive experience investing in chemicals, unlocking long-term potential and creating value in its portfolio companies,” Akzo Nobel, Thierry Vanlancker, CEO said.
Today’s deal is subject to regulatory approvals and is expected to be concluded before the end of the year.
Cargill Sells Ontario Retail Assets to La Coop fédérée
Cargill, Wayzata, Minn., reports that it has reached an agreement on the sale of Cargill’s grain and crop inputs retail assets in Ontario, including its ownership in South West Ag Partners, to La Coop fédérée, Montreal, an agri-food cooperative with operations across Canada.
The sale comprises 13 grain assets and crop inputs retail assets, and Cargill’s 50 percent share of South West Ag Partners, a joint venture which includes 9 grain and crop inputs facilities in Ontario. The sale does not include the Cargill export terminal in Sarnia, or the AgResource crop inputs wholesale business. All other Cargill grain and crop inputs assets in Canada and all other Cargill businesses in Ontario or throughout Canada are not included in the sale agreement.
Terms of the pending sale are not being disclosed. Finalization of the transaction will take place upon the completion of definitive agreements and any required regulatory reviews, which are expected the second quarter of the calendar year.
Czech Explosion Kills Six, Others Injured
Czech refinery and chemicals group Unipetrol reported an explosion occurred this morning in one of the tanks in its Kralupy refinery. Six people were killed and others seriously injured, according to media reports. However, Unipetrol so far has provided few details of the incident except to say the situation is under control and there is no other danger.
NGC, CNC Gas Agreement Imminent
The National Gas Co. of Trinidad and Tobago Ltd. (NGC) and Caribbean Nitrogen Co. Ltd. (CNC) have announced that they have reached agreement on the key commercial terms of a gas supply agreement. The companies are in the process of formalizing the required legal agreement and it is expected that this will be done imminently.
NGC shut off gas to CNC’s 650,000 mt/y ammonia plant back in January after several months of negotiating a new gas contract.
AdvanSix Confirms Hopewell Search
AdvanSix has confirmed a March 13 incident at its Hopewell, Va., plant in which state and federal authorities executed a search warrant. It said plant production across the company’s sites was not affected and the company expects to continue safely operating at plan moving forward.
While the company is still working to determine the reason and nature of the actions, it says they appear to relate to the facility’s environmental air emissions and its compliance under the previously disclosed 2013 consent decree with the federal government and the Commonwealth of Virginia. The company said it is cooperating fully with the authorities.