AECI’s acquisition of Brazilian explosives business finalised
JSE-listed chemicals manufacturer AECI’s acquisition of an explosives business near Lorena, in the Brazilian state of São Paulo, for $6.3-million, has been concluded.
The business was acquired out of business rescue and had been conditional on certain conditions precedent being fulfilled.
One such condition was the transfer of all operating licences to the AECI group.
The transfer was completed at the end of February and AECI expects to settle the purchase price by June 30.
The acquisition, from Brazil’s Dinacon, includes 100% ownership of a bulk emulsion and packaged explosives manufacturing plant, together with explosives operating licences, as well as distribution and storage facilities.
It is the first of its kind for AECI in Latin America and is considered to be a good growth platform for the group’s mining business in the rest of the region.
The acquisition is also in line with AECI’s plans to continue expanding the geographic footprint of its mining strategic growth pillar.
The Lorena facilities currently serve mainly the Brazilian construction and civil blasting industry and have had limited exposure to the large mining sector.
Under AECI’s ownership, there are significant opportunities to grow the business by leveraging the group’s experience in underground and surface mining, as well as its relationships with global mining customers, AECI said on Wednesday.
AECI already has a presence in Latin America, where the key focus to date has been on mining chemicals and plant health solutions for those markets.
The acquisition of the explosives business represents a step-change in the group’s investment in the region.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation