A case study on Incitec Pivot's acquisition strategy of dyno nobel

Article

Balachandran, Balasingham, Fazzino, James and Shams, Syed. 2020. "A case study on Incitec Pivot's acquisition strategy of dyno nobel." Pacific-Basin Finance Journal. 63, pp. 1-10. https://doi.org/10.1016/j.pacfin.2020.101386
Article Title

A case study on Incitec Pivot's acquisition strategy of dyno nobel

ERA Journal ID32913
Article CategoryArticle
AuthorsBalachandran, Balasingham (Author), Fazzino, James (Author) and Shams, Syed (Author)
Journal TitlePacific-Basin Finance Journal
Journal Citation63, pp. 1-10
Article Number101386
Number of Pages10
Year2020
PublisherElsevier
Place of PublicationNetherlands
ISSN0927-538X
Digital Object Identifier (DOI)https://doi.org/10.1016/j.pacfin.2020.101386
Web Address (URL)https://www.sciencedirect.com/science/article/pii/S0927538X20303565
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 5000 employees.

KeywordsMerger; Acquisition; Strategy; Case study
ANZSRC Field of Research 2020350202. Finance
Byline AffiliationsLa Trobe University
School of Commerce
Institution of OriginUniversity of Southern Queensland
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