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Orica Limited (ASX:ORI)

ALERT: Price-sensitive ASX Announcement for ORI
Current share price for ORI : $22.540 2.85 (14.47%)+
Announcement
Release
16 Mar 2026 8:14AM
Price at Release
$19.690
Full Release
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Summary
Orica Limited has settled litigation with CF Industries in the US by agreeing to a payment of US$169.5 million, facilitating the establishment of a diversified supply base for its US operations. Concurrently, Orica has entered into an agreement to acquire full ownership of Nelson Brothers' explosives business, thereby enhancing its presence in the US Quarries and Construction sectors. The acquisition, alongside the litigation settlement, is expected to be earnings per share accretive from the first full year of ownership, with an anticipated EBIT uplift of AUD$35 million per annum. These strategic moves aim to strengthen Orica’s operational resilience and growth potential in North America.
Key Points
  • Orica has settled litigation with CF Industries in the US for US$169.5 million.
  • Settlement is funded from existing cash and undrawn committed bank debt facilities.
  • Orica will establish a new diversified supply base in the US.
  • Agreement to acquire 100% of Nelson Brothers' explosives business for US$25 million and retire existing debt of US$48 million.
  • Acquisition expected to increase Orica's exposure to the US Quarries and Construction sectors.
  • Transaction expected to close in 2H FY26 and be EPS accretive in the first full financial year.
  • Orica anticipates EBIT uplift of AUD$35 million per annum post-integration.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.