Stock of the day: Incitec Pivot halts fertilizer business sale
Incitec Pivot ceases negotiations for the sale of its fertilizer business while proceeding with a $900 million buyback.
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Stock of the day: Incitec Pivot (ASX: IPL)
Incitec Pivot, a manufacturer of chemicals, explosives, and fertilizers, has ceased negotiations with Indonesia's TKT for the sale of its fertilizer business. The company has announced that it will continue to manage its premium explosive business, DynoNobel, and its soil health services, IPF, separately. Moreover, the company stated it will still execute its $900 million stock buyback program.
Company announcement
Incitec Pivot's Chief Executive, Mauro Neves de Moraes, stated, "We will continue to assess options for the structural separation of the two businesses. However, in the near term, our focus will be on progressing the on-market buyback program for the benefit of our shareholders."
Investors and market analysts have mixed reactions to the announcement, particularly given the setback in the sale of the fertilizer business.
Incitec Pivot's plan to sell its fertilizer business has faced a setback, but market analysts still see potential in the company's core explosive business. With mixed opinions from experts, the stock remains a hold for some and an accumulate for others, reflecting both the challenges and opportunities facing the company.
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