Australia’s IPL halts talks to sell fertilizer unit IPF

Australian chemicals and fertilizer producer Incitec Pivot (IPL) has stopped negotiations to sell Incitec Pivot Fertilizers (IPF) to Indonesian fertilizer producer Pupuk Kalimantan Timur (PKT).

The sale fell through as both parties were unable to complete the sale in an acceptable timeframe for IPL to start their on-market buyback of up to A$900mn ($606.5mn). IPL will focus on its buyback program in the near term, it said on 10 July.

IPL previously said in May that the sale of its fertilizer businesss was in "advanced negotiations".

IPL's first-half 2024 earnings before interest and tax (ebit) fell by 77pc on the year to A$10mn, it said in its first-half 2024 report on 16 May. Its distribution business continues to perform well this year, while 2024 financial year production volumes at Phosphate Hill are likely to be closer to the lower end of the range of 730,000-770,000t indicated in its first-half 2024 report, the company said.

By Huijun Yao