Incitec Pivot signed an agreement to sale its ammonia manufacturing facility

Incitec Pivot Limited (ASX: IPL) announced that it has agreed to divest its ammonia manufacturing facility situated in Waggaman, Louisiana, USA, to CF Industries Holdings, Inc. for a total value of US$1.675 billion or approx. AU$2.50 billion. The company has also signed a 25-year ammonia supply agreement with CF for up to 200,000 short tonnes of ammonia per annum to support the Dyno Nobel Americas explosives business.

The ammonia supply agreement value is considered to be approximately US$425 million (AU$634 million), which will be offset from the cash proceeds of the sale agreement for Waggaman. The sale agreement remains subject to US anti-trust regulatory clearance and the completion of other customary closing conditions.

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