Incitec & Orica sell Crop Care Aust to Nufarm

The acquisition is subject to clearance from the Australian Competition and Consumer Commission (ACCC).

Orica managing director Malcolm Broomhead said Crop Care had been unable to meet Orica's performance hurdle of an 18 percent return on net assets.

"We have acted quickly and decisively," he added.

"We believe that the divestment allows Orica to exit this business at a fair price at a time of increasing competition in the agricultural chemicals market."

As part of the agreement, Orica and Incitec will still receive the final payments owing under the Syngenta termination agreements.

Depending on the final settlement terms, the transaction would have a minimal impact on Orica's earnings per share and gearing, the company said.

But it was likely to result in a book loss to Orica of approximately $A12 million, Orica said.

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