Rheinmetall to Acquire Majority Stake in South African Resonant Holdings

Rheinmetall AG has signed an agreement with Resonant Holdings (Pty) Ltd, to acquire a majority stake in the South Africa based company.

The agreement will see Rheinmetall Waffe Munition GmbH, a subsidiary of Rheinmetall, taking a 51% share in the newly established joint venture, Rheinmetall Resonant South Africa. Current Resonant Holdings shareholders will retain a 49% stake in the new entity.

Resonant Holdings (Pty) Ltd is a leading South African specialist in plant engineering for chemical applications. The acquisition will help boost Rheinmetall's manufacturing of ammunition products.

According to a statement from Rheinmetall, the acquisition of Resonant Holdings is strategically aligned with rising global demand in the ammunition sector. The move aims to enhance Rheinmetall’s ammunition production capabilities and allow for independent management of facilities dedicated to chemical products, including propellant powders and explosives.

"By integrating Resonant's expertise in specialized plant construction, we are positioning ourselves to better meet the increasing demands of the global ammunition market," Rheinmetall noted.

Resonant Holdings is renowned for its Nuteq division, which has made significant strides in rocket and satellite fuels. The division is credited with pioneering South Africa's first nitration plant, capable of producing explosive materials such as RDX, PETN, and NTO within a single facility.