In February 2016, DSI announced that it had signed agreements to acquire Jennmar's businesses outside the US, and to sell its US Mining business to Jennmar. The acquisitions in Latin America, Europe and China (50%), and the sale of the US Mining business, were completed in the first quarter of this year.
As noted in the February announcement, the completion of the acquisition of Jennmar Australia was conditional on approval from the Australian anti-trust authority, the ACCC. We have now decided to withdraw our application to the ACCC and have agreed with Jennmar to terminate the proposed transaction.
Michael Reich, DSI Underground CEO, commented: "In the process of this review, we have registered the concerns from the marketplace about certain aspects of the proposed transaction. While we believe these could potentially be addressed, we are also conscious of our responsibility to avoid a prolonged period of uncertainty. We therefore believe it is in the interests of all parties not to proceed with the proposed transaction.
DSI Australia of course is and remains a strong and successful business in the Australian ground support market. We are pleased with the progress made with the other acquisitions we have recently made and we will build on these foundations into the future. And we will continue to provide innovative ground support solutions and exemplary service to all our customers in Australia and around the world.