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Incitec fertiliser business sale to PT Pupuk falls over

Manufacturing News

Incitec Pivot has announced that negotiations with Indonesia’s PT Pupuk Kalimantan Timur (PKT) have ended, following weeks of discussions, with Incitec saying it continues to explore options for splitting its fertiliser and explosive divisions.

As reported by @AuManufacturing and others in May, Incitec was in “advanced negotiations” with Indonesia’s PKT on a potential sale of the Incitec Pivot Fertilisers business. PHT is a major fertilisers producer in Asia and supplies urea to Australia.

On Wednesday morning (AEST), however, Incitec told the ASX that it had ceased negotiations, with CEO Mauro Neves saying a sale transaction was unlikely to be completed – and allow a planned $900 million buyback to commence – in a timely manner.

“We will continue to assess options for the structural separation of the two businesses, however in the near-term our focus will be on progressing the on-market buyback program for the benefit of our shareholders,” Neves said in a statement.

“Our IPF business remains focused on value accretive market share growth and is in a strong position for the agricultural season ahead.”  

Picture: credit Incitec Pivot

Further reading

Incitec Pivot’s fertiliser business heads for foreign control

Incitec Pivot sells troubled Waggaman plant

Incitec Pivot fails to secure gas supplies, to close Gibson Island


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