(Yicai Global) Aug. 10 -- One of China's leading manufacturers of civil explosive equipment will acquire an Australian firm as part of efforts to gain a foothold in the international mine-blasting sector.

King Explorer Science and Technology will spend AUD16 million (USD11.7 million) to take a controlling share in construction machinery maker Jacon Technologies, the Shenzhen-based firm said in a statement.

The two parties will look for synergies in terms of mine blasting and explosives mixing operations, it added, and King Explorer will benefit from gaining access to complete construction equipment product lines and client resources.  

The firm has struck an equity investment deal with Australia's Rutten under which it will combine all units belonging to Sydney-based Jacon into a holding firm. King Explorer will then take a 51 percent stake through a share transfer while Rutten will retain 49 percent of equity.

The deal depends on approvals from Chinese and Australian regulators, which could be secured by the end of next month.

Editor: William Clegg