Fertiliser, chemicals and explosives group Incitec Pivot has opted for the status quo after a strategic review of its ownership of Incitec Pivot Fertilisers.
The company had been considering a sale or demerger of the business but has now ceased discussions with potential buyers.
Incitec Pivot Fertilisers is Australia’s largest supplier of fertilisers, dispatching around two million tonnes each year for use in the Australian grain, cotton, pasture, dairy, sugar and horticulture industries.
IPL CEO Jeanne Johns said the Covid-19 pandemic had created extraordinary uncertaintities in business.
“The IPL board has concluded that it is in our shareholders best interests that we continue to capture the synergies of global nitrogen manufacturing and run…industry leading businesses.”
As well as fertilisers, nitrogen is used any Incitec Pivot’s Dyno Nobel to make explosives and detonation systems for the global mining industry.
“Recent widespread rainfall across eastern Australia has created significant demand by farmers for fertiliser.
“The business is also well-placed to benefit from any future improvement in global fertiliser prices.”
Image: Incitec Pivot/Gibson Island
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