Incitec Pivot Ltd T.IPL

Primary Symbol: ICPVF

Chemicals Basic Materials

Incitec Pivot Limited is an Australia-based manufacturer and supplier to the resources and agricultural sectors. Its segments include Asia Pacific and Americas. Asia Pacific segment includes Fertilisers Asia Pacific (Fertilisers APAC) and Dyno Nobel Asia Pacific (DNAP). Fertilisers APAC manufactures and sells fertilizers in Eastern Australia and the export market. It also manufactures, imports and sells industrial chemicals to the agricultural sector and other specialist industries. DNAP manufactures and sells industrial explosives and related products and services to the mining industry in the Asia Pacific region, Turkey and France. Americas segment includes Dyno Nobel Americas, which manufactures and sells industrial explosives and related products and services to the mining, quarrying and construction industries in the Americas (Canada, Mexico and Chile) and initiating systems to businesses in Australia, Turkey and South Africa. It also manufactures and sells industrial chemicals.

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Incitec Pivot Ltd > Merger

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Comment by MOJOJONOon Mar 28, 2020 1:44am

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Post# 30855401

RE:RE:RE:Merger

I'm not sure how it would work for PPL since they signed on with the Kuwaitis, any break fees or what not.

IPL early on did say they chose to go at this alone, but left an opening if someone brought something useful to the table beyond capital then maybe they would be interested. Some selected notes I took when conversing with IR back around August 30, 2017:

- Canada is not a big user (of PolyPropylene), but Canada still imports 500k tonnes.

- Target market for Polypropylene is mostly USA and probably some Canada.

- Pembina Pipelines (PPL) will be building same size +500k, but IPL doesn't think it will over saturate the market. "We would build a second facility if PPL didn't." (2020: PPL has placed their plans on hold.)

- Partnering is not off the table, but it would be a good access to Capital.

- However a Joint Venture would be about more than money. IPL would want them to bring expertise and contracts.

- Example of IPL financial strength, 2013-2015, $3bn deal was done solo and this was when IPL was smaller. Now IPL is bigger and should be able to do it solo.

- Joint Ventures means more complex contracts for supply and product sales.

- IPL has a good track record, so why give up returns. We have experts.
- The Williams management and staff have been retained from the acquisition, giving IPL their expertise.