Interesting post PT but is the FMC minerals split still going ahead in this format? There seems to have been a change of heart following their Cheminova acquisition. This from their Sept 8 presentation...
Plans to Divest Alkali Chemicals and Retain Lithium
Achieves Benefits of Previously Announced Separation
Alkali Chemicals a high-quality business with substantial cash generation
– 3 year average EBITDA of $177 million, EBITDA margin of 26% and ROCE of 24%1
– World’s largest producer of natural soda ash
– Attractive industry structure and significant delivered cost advantage
– Tradition of operational excellence
– Proven track record of strong cash generation and high return on capital
• Proceeds from sale used to pay down debt
• Lithium will be retained and will ultimately become a separate operating
segment of FMC
– One of two global integrated manufacturers
– The only brine-to-metal producer in the world
– Strategically focused on energy storage, polymer and pharmaceuticals markets
and then from the summary page
• FMC Lithium will ultimately become a core operating segment
It may not provide quite the look through valuation that you are looking for (although their segment reporting should reveal the Lithium numbers with more clarity) but I think it is very revealing that they see the relatively small Lithium business becoming a core operating segment. Let's see what they really have in mind for the proceeds of the soda ash divestment.
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- FMC Minerals spin out = ORE revaluation
Interesting post PT but is the FMC minerals split still going...
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