Nutrien Ltd. (TSX:NTR) the world's largest producer of potash fertilizer, is mulling divestments in South America, replacing management and halting an acquisition spree in Brazil after steep losses in the region, according to sources with direct knowledge of the matter. Nutrien this year separated Brazil from the rest of its Latin American operations as it mulls the sale of Argentina, Chile and Uruguay assets in order to streamline operations in the region, two sources said. Since April 2023, at least eight senior executives or managers were fired or quit the company, including Brazil's entire supply management team, and the former Latin America CEO and CFO, according to three sources, who spoke on condition of anonymity because details of the changes have not been publicly announced.

The company's shares rose to the day's high of CAD 74.33, up 2.2% following the Reuters story. Nutrien last year recognized a $465 million impairment related to its South American acquisitions, which Morningstar analyst Seth Goldstein said was due to the lower value of its fertilizer inventory. "As a new business, structural and leadership changes are part of the growth journey," Nutrien said in a statement to Reuters.

The company declined to comment on details of its plans, including potential divestments or staff changes. Andre Dias, the Latin America CEO, left the company in April 2023 and the region's CFO Luis Cerresi departed in December, according to their LinkedIn profiles. Nutrien had named new global CEO Ken Seitz in 2022.

Cerresi declined to comment. Nutrien immediately suspended all acquisitions in Brazil and halted construction of new fertilizer plants after Dias left, two sources said.