Old article but still relevant The AustralianHOMEHOMEOrica could...

Old article but still relevant

The AustralianHOMEHOMEOrica could tempt WesfarmersBy BRIDGET CARTER - THE AUSTRALIAN1:

Orica could tempt WesfarmersA demerger of Orica's $1 billion non-mining chemicals division has been much anticipated by the market.But sources are now questioning whether another scenario could unfold where the company joins forces with the chemicals division of Wesfarmers in a merger or takeover play worth almost $9bn.Wesfarmers is a competitor to Orica in the explosives space and made an attempt to take over the company before 1997, when it was known as Imperial Chemical Industries.Wesfarmers is cashed up and, while it manufactures explosives, it does not offer the full suite of services as does Orica.It is also thought to have ambitions to expand offshore, making an Orica takeover a way to enter international markets with existing management in place.While sources say the conglomerate would have probably looked at the deal, there is no suggestion any discussions between the two have taken place.Orica's ammonium nitrate business would probably be of most interest to Wesfarmers.Another logical argument for the deal to proceed is that it would be unlikely to receive objections from the competition regulator, given other global groups also operate in the Australian market.Wesfarmers dominates the west coast market in Australia, whereas Orica is strong on the east coast. But Orica has started to encroach on Wesfarmers' west coast turf, sources say.Orica is currently at the centre of a strategic review being undertaken by investment bank Goldman Sachs and says there is no end date as to when a decision will be made on its options.Wesfarmers declined to comment.READ NEXTWorkers to give city a wide berth after outbreaksJESS MALCOLM, STEPHEN LUNNCOVID-19 outbreaks in Sydney and Melbourne threaten to delay the return to the office of tens of thousands of CBD workers as business leaders warn of further economic damage.PM rejects early election pushRICHARD FERGUSONScott Morrison has pushed back on federal MPs expecting an early federal election this spring.Growing human cost of China trade standoffSTEPHEN LUNN, ANGELICA SNOWDENThe 11,000 residents of Portland are on edge. The Victorian town’s timber and crayfish industries have ground to a halt, collateral damage in the trade row with China.Chapter 5EMMA HARCOURTMaya needs a drink. McCredden needs to get a grip. Historical fiction author Emma Harcourt is about to take our progressive novel in a dark new direction.World’s eyes on Australia to see if we can resist ChinaCLIVE HAMILTONCalls by the ‘powerful elites’ for the government to ‘fix the relationship’ with China is exactly what Beijing planned.Back to topThe AustralianChinese SiteThe Australian Plus member benefitsSign up to NewslettersManage Your NewslettersContact UsHelpThe Australian appThe Australian app iTunesThe Australian app Google Play