As negotiations drag on between Southbank, Victoria-based Incitec Pivot Ltd. (IPL) and Indonesian state-owned PT Pupuk Kalimantan Timur for the proposed A$1.5 billion (approximately $975.5 million at current exchange rates) sale of IPL’s fertilizer business, Australia’s Senex Energy, a unit of South Korean steel giant POSCO International Corp., is reported to be closely watching the situation and ready to step in should IPL’s discussions with Pupuk Kaltim break down, according to the Australian Financial Review.
According to the report, Senex and the Australian Wesfarmers group were among those that had expressed interest in IPL’s fertilizer business but were knocked out of the running by Pupuk Kaltim’s higher offer.
IPL has been in negotiations with the Indonesian group since last summer (GM July 28, 2023) and divesting the fertilizer unit has been under consideration for some time. There were reports in December that IPL may “walk away” from the proposed deal, with IPL Chairman Greg Robinson citing “complications” in negotiations with Pupuk Kaltim (GM Dec. 22, 2023).
In a business update on Feb. 15, IPL said the process for the potential sale of the fertilizer business is “progressing” but there is no certainty that any agreement will be reached or that any sale transaction will occur.