Suitors given more time to mull Incitec Pivot fertiliser assets

After two earlier attempts to offload the fertiliser business, Incitec Pivot is understood to be a committed seller under new chief executive Mauro Neves. Picture: iStock

Short-listed parties weighing up a purchase of Incitec Pivot’s ­assets will be given more time to assess the opportunity in light of the volatile market conditions, sources say.

The Australian-listed group shortlisted parties in March for its fertiliser distribution business; they included global fertiliser trading houses, including from Japan, and private equity firms.

Australian listed groups such as Ridleys may also be in the mix, but earlier groups that looked, such as BGH Capital and Pacific Equity Partners, are out.

Volatile market conditions are set to slow down several sale processes, sources say, as buyers sit on their hands as they assess the fallout from global tariffs introduced by Don­ald Trump.

Offshore companies have looked at it in past auctions, including CF Industries, Yara International and The Mosaic Company. Nutrien would be an obvious contender but would be likely to face opposition from the Australian Competition and Consumer Commission; it’s understood that suitors that may face those challenges would not be given preference in the sale.

After two earlier attempts to offload the business, Incitec Pivot is understood to be a committed seller under new chief executive Mauro Neves.

It has told the market there has been strong interest from a range of trade and financial parties, and hopes for a binding sales agreement by mid-year.

A separate sale process has been happening for Incitec Pivot fertiliser’s Gibson Island real estate assets.

Last time, suitors were not keen to buy the manufacturing part of Incitec Pivot fertilisers but were motivated to buy distribution. This time, there’s the chance to buy just the distribution unit on its own, where all the value is considered to be.