A Case Study on Incitec Pivot’s Acquisition Strategy of Dyno Nobel

30 Pages Posted: 19 Jul 2020 Last revised: 15 Apr 2021

See all articles by Balasingham Balachandran

Balasingham Balachandran

Dept of Economics, Finance and Marketing, La Trobe Business School, La Trobe University; Financial Research Network (FIRN)

James Fazzino

La Trobe University

Syed Shams

University of Southern Queensland

Date Written: June 12, 2020

Abstract

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

Suggested Citation

Balachandran, Balasingham and Fazzino, James and Shams, Syed, A Case Study on Incitec Pivot’s Acquisition Strategy of Dyno Nobel (June 12, 2020). Pacific-Basin Finance Journal, Available at SSRN: https://ssrn.com/abstract=3625251 or http://dx.doi.org/10.2139/ssrn.3625251

Balasingham Balachandran (Contact Author)

Dept of Economics, Finance and Marketing, La Trobe Business School, La Trobe University ( email )

Dept of Economics, Finance and Marketing,
La Trobe Business School, La Trobe University
Bundoora, Victoria 3086
Australia
+61394793103 (Phone)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

James Fazzino

La Trobe University ( email )

Plenty Road
Bundoora
Melbourne, VIC 3072
Australia

Syed Shams

University of Southern Queensland ( email )

Sprinfield
Springfield
Springfield, Queensland 4300
Australia
+61734704551 (Phone)

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