North Sydney, Australia-Dyno Nobel Ltd. reports that it has signed an agreement to acquire a 50 percent stake in Sasol Dyno Nobel (SDN), a South African initiation systems manufacturer, for US$34.5 million. “The stake in SDN is aligned to our strategy of leveraging our core technologies through re-entering previously exited markets,” said Peter Richards, Dyno Nobel CEO. “This will provide direct access to the attractive southern African market that is undergoing a conversion away from the older cap and safety fuse products to nonelectric initiation systems.” Dyno Nobel previously owned a 40 percent stake in SDN prior to Industri Kapital selling the Dyno Nobel Group, including all joint venture interests, to the Macquarie Bank led consortium in December 2005. “This region is one of the world’s great mining regions which continues to see major investment in new mines,” said Richards. “In addition, improved mining practices have directly resulted in increased demand for more technically advanced explosives products. Demand for nonelectric initiating systems is expected to triple in the next three years, and this places Sasol Dyno Nobel in an excellent position to leverage growth opportunities in the region.”
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