Hanwha Corp. said on August 12 that it would acquire LDE Corp. Australia and its U.S. subsidiary. LDE Corp. is a mining services company specializing in explosive manufacturing and blasting.
The Korean company has already signed a stock transfer agreement in which it would take over the 100-percent stake in LDE Australia and LDE U.S. at the cost of 25 billion won and 14 billion won each. The company will close the deal by October this year at the latest after going through approval process in respective countries.
Established in 1996 in Queensland, LDE Corp. has a capacity of producing 200,000 tons of explosives a year. Hanwha expects to see an increase in its sales overseas through the transaction. LDE Corp. posted sales revenue of US$32.5 million in Australia and $8.9 million in the United States.
In addition, Hanwha Corp. expects that the latest acquisition would mesh well with the overseas mining services business undertaken by its explosive unit. Hanwha Corp. is currently engaging in mining service business in Indonesia, Australia, and South America. Choi Yang-soo, president of the explosive unit of Hanwha Corp., said, "By combining our explosive technology and brand power with LDE's expertise in mining services, we will try to expand our presence in the world."
