Incitec Pivot (ASX:IPL) has agreed to sell its Waggaman ammonia manufacturing facility in Louisiana, USA to CF Industries Holdings for $2.5B.
Incitec Pivot says the sale is part of its objective to monetise the value of the excess ammonia production from the facility while retaining the strategic value of the Waggaman site to the competitiveness of the DNA explosives business.
The company has also secured a 25-year, $634M ammonia supply agreement with CF to support the Dyno Nobel Americas explosives business.
The deal is still subject to US antitrust clearance and other conditions.