A Case Study on Incitec Pivot’s Acquisition Strategy of Dyno Nobel
30 Pages Posted: 19 Jul 2020 Last revised: 15 Apr 2021
Date Written: June 12, 2020
We present a case study on Incitec Pivot Limited's (“IPL”) acquisition strategy during a major stock market swing to demonstrate how valuation aberrations can be leveraged to create long term value for shareholders. We discuss the management strategies, structures, and ideology of IPL and critically analyze its acquisition of Dyno Nobel Limited (“Dyno”). Furthermore, we highlight how IPL’s acquisition of Dyno transformed its business from an Australian based fertilizer company into the world’s 2nd largest explosives company - with operations in 13 countries, 21 major chemical facilities and around 5,000 employees.
Keywords: Merger; Acquisition; Strategy; Case Study
JEL Classification: G10; G30; G34
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