Incitec Pivot’s Indonesian suitor is in the final furlong of carving out its big Australian fertiliser division eight months after Street Talk outed the talks.
The $1 billion-plus deal is expected to be announced within weeks, although sources said there are still a few bits and pieces to iron out.
Talks between Incitec Pivot and state-owned Indonesian group Pupuk Kaltim to divest its fertiliser division were dogged by concerns of a potential showdown with Australia’s Foreign Investment Review Board. The business is Australia’s largest in the sector, with about a 50 per cent market share in manufacturing and distribution on the eastern seaboard of Australia.
However, sources told Street Talk the sale is close to receiving the necessary regulatory approvals. Citi and Gilbert + Tobin are helping Pupuk Kaltim get across the finish line. Macquarie, UBS and King & Wood Mallesons are tending to Incitec Pivot.
QIC has given its bankers the green light to kick off an auction for a 33 per cent stake in Powerco, one of the biggest electricity and gas distribution networks in New Zealand. The business made $241.3 million in EBITDA and fair value movements for the 2023 financial year from its three units.
