SINGAPORE/SYDNEY : Indonesian state-owned fertiliser company PT Pupuk Kalimantan Timur, or Pupuk Kaltim, is in talks to acquire the fertiliser business of Australian-listed Incitec Pivot, two sources familiar with the matter said.
Incitec Pivot commands a market value of A$5.73 billion as of Monday . The Southbank, Victoria-headquartered company produces and distributes fertilisers and explosives and employs more than 5,800 employees, according to its website. One analyst said the fertiliser business could be worth around US$1.2 billion.
Incitec's spokesperson told Reuters in response to a query on Monday that the company is not commenting beyond a statement it issued on Jul 12 saying it has"received a number of approaches for the potential acquisition of its fertilisers business".The talks come as Pupuk Kaltim is on an expansion trail. The Kalimantan-based firm announced in March that it was planning to invest at least US$1 billion to increase capacity and set up a soda ash plant.
Pupuk Kaltim has 13 factories, including five ammonia plants with a capacity of 2.74 million metric tonnes a year and five urea factories producing 3.43 million metric tonnes per year, its website shows.