Compcom approves Solar Mining acquisition of Problast
27 May 2024
Solar Mining has received conditional approval from the Competition Commission to acquire Problast and its sister companies, a move that could put drilling and blasting sector leaders BME under pressure and consolidate India’s industry influence.
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Solar Mining, a leading provider of bulk emulsion explosives and accessories, is controlled by Solar Overseas Netherlands Co-operative (SONC) and Ortiz Investments (Pty) Limited. SONC is ultimately owned by Solar Industries India Limited (SIIL), a major player in the global explosives industry.
SIIL, in its 2022-23 annual report, expressed confidence in the growing Indian economy, with a particular focus on opportunities in the defence and infrastructure sectors.
The company also highlighted its commitment to investing in new products, technologies, and processes to meet the increasing demand for explosives in India.
“We also aim to expand our footprint in newer geographies to considerably contribute to the overseas turnover,” said Solar chairman Satyanarayan Nuwal in the annual report.
“I am confident that our investments in technology and our passion for innovation and operational excellence will pay dividends and propel us to the path of glory and success.”
Local experts
The Problast group of companies, which includes Problast Holdco Co (Pty) Ltd and Problast B-BBEE, is a major provider of drilling and blasting services to the mining sector. The company is jointly controlled by Problast Holdco and Problast B-BBEE, which, in turn, is jointly controlled by the SMC Trust and Problast Empowerment Trust, an employee trust.
The Commission approved the acquisition subject to conditions aimed at protecting and increasing employment, increasing procurement from historically disadvantaged person (HDP) suppliers, and addressing other public interest concerns.
This consolidation within the local drilling and blasting sector is expected to benefit both Solar Mining and Problast, with both companies now more able to support their global clients.
