Incitec Demerger Could Spark A$10.7 Billion in Bids, UBS Says

Incitec Pivot Ltd. (IPL) could demerge its fertilizer and explosives’ units and spur separate takeovers valued at a total of A$10.7 billion ($11.5 billion), UBS AG (UBSN) said.

“The timing and rationale of a demerger could be right,” UBS analysts led by Ramoun Lazar said yesterday in a report. “The separated structure could also attract interest from both strategic and financial buyers given the strong position of both businesses.”

Melbourne-based Incitec’s explosives business could attract a A$6 billion takeover from Yara International ASA (YAR), Wesfarmers Ltd. (WES) or private equity funds, while the fertilizer unit may be worth A$4.7 billion to North American rivals such as Mosaic Co. (MOS), UBS said.

To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.