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

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Sept. 1 (Bloomberg) -- Incitec Pivot Ltd. 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 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, Wesfarmers Ltd. or private equity funds, while the fertilizer unit may be worth A$4.7 billion to North American rivals such as Mosaic Co., 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