FMC surges 6% on strategic review including potential sale
Agricultural chemicals company explores options as shares slump 72% over past year amid patent expirations and generic competition
FMC Corporation shares jumped 5.9% to $16.99 on Tuesday after the agricultural chemicals manufacturer announced it has authorized a review of strategic alternatives that could include selling the entire company. The stock rallied on trading volume of 8.95 million shares, more than double the daily average of 3 to 4 million shares, as investors priced in a potential takeover premium for a company with a $2 billion market capitalization.
The announcement, which accompanied FMC's fourth-quarter and full-year 2025 earnings release, marks a dramatic shift for a company that has seen its stock collapse 71.5% over the past year. Chief Executive Pierre Brondeau has characterized 2025 and likely 2026 as "reset years" for the Philadelphia-based business, which faces mounting pressure from patent expirations, generic competition, and challenging market conditions.
FMC, which once operated a lithium business spun off as Livent Corporation in 2018, is now a pure-play agricultural sciences company. Its agricultural products arm accounts for approximately 90% of sales, offering crop protection chemicals including herbicides, insecticides, fungicides, and seed treatments. The company operates in more than 50 countries and has historically expanded through acquisitions, including the purchase of Cheminova A/S in 2015 and a significant portion of DuPont's crop protection business in 2017.
The strategic review comes as FMC grapples with the expiration of patents for higher-margin products, particularly Rynaxypyr, a key revenue generator whose patent expires in major markets this year. The company reported a net loss for 2025, impacted by a goodwill impairment, and has faced difficulties with customer collections in South America due to high interest rates. In October 2025, FMC slashed its guidance and reduced its dividend by 86%, signaling the depth of its challenges.
"This broader review follows previous strategic adjustments by the company in late 2023 and 2025," according to regulatory filings. In September 2025, the company decided to divest its direct sales model in India, shifting to a business-to-business approach in that market.
As part of its turnaround efforts, FMC plans to reduce approximately $1 billion in debt through asset sales and licensing agreements in 2026 while strengthening its core product portfolio. The company has been developing new products, including the fluindapyr herbicide and Isoflex insecticide, as it seeks to offset competitive pressures.
Potential buyers for FMC remain unnamed in the company's announcement, but larger agricultural chemicals and chemical companies could be interested in acquiring its portfolio and market presence. German chemical giant BASF considered acquiring FMC in 2017 to bolster its generic pesticides business, though those plans were put on hold to evaluate assets divested by other companies undergoing mergers at the time.
The broader agricultural chemicals industry has undergone significant consolidation in recent years, though no current reports specifically name major players like Bayer, Corteva, or Syngenta as potential buyers. These companies have their own challenges, with Syngenta and Corteva currently facing a federal antitrust lawsuit concerning alleged practices to hinder generic pesticide competition.
Wall Street analysts maintain a neutral consensus on FMC, with a median price target of $17.00, according to market data. Six analysts rate the stock a buy, 13 recommend hold, and one suggests strong sell. The stock has traded in a 52-week range of $12.10 to $43.66, reflecting the steep decline from its peak.
Institutional investors own 90.1% of FMC's outstanding shares, suggesting any potential acquisition would need support from major shareholders. The company's forward price-to-earnings ratio stands at 7.06, while its price-to-sales ratio is 0.56, indicating some investors view the stock as undervalued despite its recent challenges.
The strategic alternatives review process typically takes several months, and there is no guarantee that FMC will agree to any transaction. The company said it will provide updates on the process as appropriate but does not intend to comment further unless a definitive agreement is reached or the review is completed.