Incitec Pivot Reviews Asian Fertilizers Arm
Top Australian fertilizer producer Incitec Pivot is undertaking a strategic review of its Fertilizers Asia Pacific business. The company will assess various options, including a potential sale, a demerger or retaining the business and continuing to invest for growth.
Incitec has appointed Swiss investment bank and financial services group UBS as its advisor for the review, which is expected to continue during 2020 and will be driven by optimal capital allocation and maximizing shareholder value, Incitec said.
The company added that there are attractive growth opportunities available and it is a logical time to assess the future of the business and the optimal path to realize its potential.
Commenting on the move, Incitec Pivot’s managing director and CEO Jeanne Johns said: “Under the new leadership of Stephan Titze, the fertilizer business has made good progress in advancing a number of important strategic priorities and growth opportunities. Now is a logical time to initiate a strategic review, with the business well positioned to benefit from the emergence of ag tech and to leverage its strong platform in the Australian market.”
Titze was appointed as president of Incitec Pivot Fertilisers on Jan. 16, 2019. Incitec said its fertilizer business has made good progress on a number of strategic milestones and operational issues during 2019.
These include negotiating various gas supply and other arrangements to allow manufacturing operations to continue at Gibson Island; rationalizing its single super phosphates production at Geelong; and returning to reliable production at Phosphate Hill in Queensland.
