German weapons manufacturer Rheinmetall Group has agreed to acquire a majority stake in South African firm Denel Munitions.

The agreement, subject to regulatory approval, will see Rheinmetall hold a 51 percent share in Denel Munitions, a business division of Denel Group.

Denel Munitions specialises in artillery and mortar systems, with strong market presence in South Africa, Asia, the Middle East and South America.

The acquisition will help Rheinmetall expand its market presence, as currently the bulk of its business is conducted with NATO countries, executive board chairman Klaus Eberhardt says.

“With this planned acquisition of Denel Munitions, we want to expand our core business as well as penetrate new markets with major strategic potential.”

Financial details of the deal have not been disclosed.

By Elizabeth Clifford-Marsh