Argentina has experienced a decline in foreign direct investment to negative levels for the first time in 22 years, coinciding with a trend of international companies divesting their operations to local enterprises. A report indicates that FDI recorded a negative US$1.52 billion from January to November 2025, marking the first year with a deficit since 2003. A source confirmed that the deficit has resulted from the sale of foreign companies to local capital this year. The figure continued to be negative despite Javier Milei’s administration drawing in certain foreign investments through a tax incentive program and additional benefits referred to as RIGI.
The most recent company to announce its departure from the country is Canadian fertilizing firm Nutrien, which has finalized the sale of its nitrogen production facility, Profertil — the largest fertilizer producer in Argentina — to two domestic firms. Nutrien declared its intention to exit Argentina in September, yet finalized the sale in the preceding week. The company, recognized as the second-largest fertilizer producer globally, maintained a 50% stake in Profertil, while the remaining 50% was controlled by the state energy company YPF until Thursday, when its board announced that it would also divest its stake. Argentine firms Adecoagro and Asociación de Cooperativas Argentinas are engaging in a joint acquisition to purchase the operation. “Closing the sale of our equity stake in Profertil demonstrates continued progress towards simplifying our portfolio, enhancing earnings quality, and improving cash conversion,” stated Ken Seitz.
Nutrien reported that it has generated around US$900 million in gross proceeds globally from asset divestitures since the fourth quarter of 2024, with Profertil’s sale accounting for three-quarters of such operations. Nutrien represents the latest in a series of foreign firms that have opted to exit Argentina and divest their operations to domestic enterprises following Milei’s assumption of office in December 2023. While certain exits may be linked to multinational corporations adjusting their global strategies, others appear to stem from the broader macroeconomic conditions of the country. Florencia Fiorentin noted that import liberalization, exchange rate appreciation, and a sharp decline in local demand suggest that consumers are buying less overall while increasingly purchasing imported goods.
This trend is visible across multiple sectors. The French supermarket chain Carrefour is seeking buyers for its Argentine operations, which include 700 branches, while the U.S. entertainment conglomerate Paramount has sold its local television network Telefé to a domestic media holding. Fernando Morra, an economist and former vice economy minister, explained that motivations vary by sector. For mass consumption companies, prolonged economic stagnation and a lack of favorable prospects are the main challenges. For tradable-sector firms such as Profertil, an appreciated exchange rate that fails to reflect productivity gains has made the country expensive and uncompetitive, discouraging investment. Morra added that the liberalization of the exchange market for foreign companies is increasingly viewed as an exit opportunity rather than an entry point. The pattern has continued in recent years, with YPF acquiring production blocks in Vaca Muerta from TotalEnergies in August, Telefónica selling its Argentine operations to Telecom in February, and ExxonMobil divesting all regional assets to Pluspetrol last year in a deal valued at approximately US$1.7 billion.