Mosaic potash asset sale has taken a major step forward after the company signed a definitive agreement to divest its potash operations in Carlsbad, New Mexico, for a total consideration of $30 million. The transaction involves the sale of the Carlsbad mine’s operations, assets, and liabilities to International Minerals Carlsbad, LLC.
Under the agreement, the buyer will pay an initial cash amount of $20 million, subject to customary closing adjustments. In addition, $10 million in deferred payments will be made in three equal annual installments starting in 2029. The buyer will also assume responsibility for all asset retirement obligations associated with the Carlsbad operations.
Mosaic expects to complete the transaction in the first half of 2026. The company also plans to record a non-cash asset impairment charge in the fourth quarter of 2025, reflecting the divestment.
Transaction Includes Potash Brands and Water Business
As part of the Mosaic potash asset sale, International Minerals Carlsbad will take over Mosaic’s potash and water business in New Mexico, along with related intellectual property. This includes established fertilizer brands such as K-Mag and Dynamate.
Mosaic said the sale allows the company to further streamline its asset portfolio and concentrate production in regions that offer stronger long-term returns.
Strategic Shift Toward Core Potash Assets
Commenting on the transaction, Mosaic’s Executive Vice President of Operations said the divestment supports the company’s strategy to focus on core assets. Following the sale, Mosaic’s potash production will be entirely concentrated in Saskatchewan, Canada, where operations are expected to deliver stable and attractive returns.
The buyer stated that the acquisition provides an opportunity to build on the long-standing potash industry legacy in New Mexico, while ensuring continuity for employees, customers, and suppliers during the transition.
Advisors and Industry Impact
Lazard Frères & Co. LLC acted as financial advisor to Mosaic on the deal. Industry observers note that the transaction reflects a broader trend of fertilizer producers optimizing portfolios and reallocating capital toward high-return assets.
The Mosaic potash asset sale highlights ongoing restructuring in the global fertilizer sector as companies adapt to changing market dynamics.
