Carl Zeiss Optronics Acquires Majority Interest in South Africa
14 March 2007 17:06
Centurion, South Africa – The Oberkochen-based company Carl Zeiss Optronics is acquiring a majority interest in Denel Optronics, a South African enterprise with whom it has already enjoyed close collaboration in the technical field for some years. Denel Optronics belongs to the state-owned group Denel, which operates primarily in the defence field and is currently undergoing partial privatisation.
With the acquisition of a 70% share in the South American company, Carl Zeiss Optronics is consistently pursuing its growth strategy. The Denel Optronics product line includes innovative security and defence products which are an ideal match for the product spectrum of Carl Zeiss Optronics.
In the first three years the South African company will be strengthened by investments totalling at least 60 million rand (approximately €6.5 million euros) which will be financed by Carl Zeiss Optronics and Denel. The funds will be chiefly utilised for product development, the extension and modernization of the production lines, the expansion of international marketing and the setup of international service centres. IT and project management systems will be additionally upgraded.
The new company, which will operate under the name Carl Zeiss Optronics Pty Ltd, will be led by a team of experienced managers from both shareholders. The supervisory and executive boards of Carl Zeiss, as well as the management of Denel and the South African Ministry of Public Enterprises, have already given their consent to the transaction.
The agreement was signed in Centurion, South Africa, by a member of the board of Carl Zeiss Optronics, Dr. Armin Breinig, and the CEO of Denel, Shaun Liebenberg. The effectiveness of the agreement is dependent on approval by the antitrust authorities.
Dr. Breinig explains the reasons for acquiring the majority interest: "The purchase of Denel Optronics is part of our growth strategy. Our product lines are a very good match. In addition, we receive the possibility of improved market access. We are targeting our investments at improving the production process and are aiming to achieve a substantial increase in the revenues of Carl Zeiss Optronics Pty Ltd in South Africa. This will contribute to the growth of the entire company and help to safeguard jobs in Germany also."
For more information on this company:
Carl Zeiss Optronics - Naval Optronic and Optical Sensors, Periscope Systems and Optronics Mast Systems
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