Rheinmetall in discussions to acquire SEI

Germany's Rheinmetall is negotiating a possible acquisition of Italian munitions and pyrotechnics specialist SEI (Societa Esplosivi Industriali Spa), sources close to the discussions told Jane's.

The negotitations are understood to be progressing with a view to announcing a deal by September.

Rheinmetall declined to comment when approached by Jane's on 25 June, while nobody at Paris-based EDP Groupe (of which SEI is part) was available for comment.

A purchase of SEI – which employs 160 people and has a customer list that includes the Italian Armed Forces and a number of defence ministries within NATO – could be viewed as consistent with Rheinmetall's past strategy of acquisitions in the munitions field. It purchased Swiss military fuze system manufacturer Zaugg Elektronik AG in 2007 and took a majority stake in South Africa's Denel Munitions the following year.