Indian industrial giant Solar Group has announced a R21.8 billion (US$1.2 billion) all-cash offer to acquire South African’s Omnia Holdings.

“The transaction is expected to accelerate growth across Omnia’s Mining and Agriculture businesses through enhanced technology, R&D, innovation, scale, market access and customer reach,” read Omnia’s statement.

The R134.50 (US$7.48) per share offer represents a 31% premium to Omnia’s pre-announcement share price.

Listed on the Indian Stock Exchange, Solar is recognised as a major player in industrial explosives, providing packaged and bulk explosives and initiating systems to the mining and infrastructure sectors.

The press release said the deal would enable Omnia’s biostimulants business to leverage Solar group’s presence to expand market access and support the combined company’s broader growth and diversification ambitions.

The combined entity will have enhanced capabilities to serve agricultural markets across Solar’s 90-country footprint, said the statement.

“Bringing together Omnia’s manufacturing and supply capabilities, technology, brands and customer relationships with Solar group’s scale, R&D capabilities, commercial reach and international presence creates a powerful platform,” said Omnia Group CEO Seelan Gobalsamy. “It provides opportunities to expand Omnia’s sustainable Agriculture solutions into new markets.”

Solar Group CEO Manish Nuwal emphasized the strategic value: “Omnia Agriculture provides Solar group with an established position in integrated crop nutrition and biologicals—an attractive sector underpinned by the long-term importance of food security, sustainable agriculture and farm productivity.”

The transaction remains subject to shareholder and regulatory approval.