Orica says it has completed the acquisition of 83.5% of shares in Peru’s Exsa, moving the Australia-listed firm closer to becoming the number one industrial explosives player in the country, Alberto Calderon says.

First announced in February, the acquisition will create a step-change in Orica’s manufacturing footprint, driving competitive advantage and an enhanced position in the Latin America market, with significant synergies available by combining Orica and Exsa’s operations, the company says.

Calderon, Orica’s Managing Director and CEO, said the company was delighted to welcome Exsa into the Orica family.

“This is a transformational acquisition for our company. It establishes Orica as the number one player in Peru, Latin America’s highest growth market, and transforms our entire initiating system footprint.

“We now look forward bringing our two great businesses together and delivering the many meaningful and tangible synergies that will drive revenue and productivity across the region.”

Orica expects to complete the tender offer process for the remaining shares by the end of the calendar year.

Peru’s number one manufacturer and distributor of industrial explosives, Exsa provides technical assistance and support to the mining (particularly gold and copper) industries. It has a significant share in both Peru underground and open-pit markets, according to Orica, with an efficient supply chain, comprehensive sales distribution network and strategically located ammonium nitrate emulsion assets in north, central and south Peru.

Its initiation systems and packaged explosives capability is market-leading with a new, semi-automated and integrated initiation systems manufacturing facility in Lurin, Peru, according to the company.