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Incitec Pivot retains fertilizers business

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World Fertilizer,

Incitec Pivot (IPL) has concluded a strategic review of its fertilizers business (Incitec Pivot Fertilisers) and has decided to retain the business.

In September 2019, IPL commenced the strategic review of the Incitec Pivot Fertilisers business with three possible outcomes envisaged – sale, demerger, or retain and invest.

IPL has ceased discussion with potential buyers under the sale option, following a formal process to explore market interest. A careful assessment of a potential demerger was also undertaken. IPL has concluded, given the extraordinary market uncertainty and travel restrictions caused by the Covid-19 pandemic, that the right outcome for its shareholders is for the company to retain Incitec Pivot Fertilisers and focus on the supply of fertilizers and services to Australian agriculture.

Covid-19 has not had a significant impact on IPL’s business operations to date. IPL has made appropriate operational adjustments to enable continued safe operation while addressing the risks and restrictions associated with Covid-19.

Jeanne Johns, IPL Managing Director and CEO, said: “The impact of the Covid-19 pandemic on market conditions has created extraordinary uncertainty. The IPL Board has concluded that it is in our shareholders’ best interests that we continue to capture the synergies in global nitrogen manufacturing and run the industry leading businesses of Incitec Pivot Fertilisers and Dyno Nobel to deliver quality products and services for our customers in the agricultural and resources sectors.

“During this period of disruption, we have worked closely with our customers, farmers, and Federal and State governments to ensure the fertilizer supply chain remains robust, to provide essential nutrients for farmers to provide food for Australians.

“Recent widespread rainfall across eastern Australia has created significant demand by farmers for fertilizer. The business is also well-placed to benefit from any future improvement in global fertilizer prices.”

IPL will release its results for the half year ended 31 March 2020 on 12 May 2020.

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