In a deal expected to be finalized early next year. Australian explosives manufacturer Orica has agreed to sell its chemicals business to US private equity investor Blackstone for A$750 million ($653 million).

Orica said in August that it had decided to sell or spin off its chemicals business, realizing a long-held plan to become solely a mining business. Now it says that, compared with a demerger, a sale will likely create more value for shareholders.

The chemicals business sale, which reports said fell short of analyst price estimates of as much as A$1 billion, includes trading businesses in Australia, New Zealand and Latin America and the Australian chloralkali manufacturing business. It also includes food and nutrition supplier Bronson & Jacobs.
Orica also announced plans to cut 500 jobs next year, adding to the 1,300 positions that have been axed over the past two years.

Combined with other cost cutting, the job cuts could result in pretax financial benefits of A$140 million-170 million next year and a further A$60-80 million in 2016, the company said.

"Orica's cost base is being reset and the company better positioned to meet customers' needs in dynamic market conditions," managing director and chief executive Ian Smith remarked.