Dyno Nobel shareholders set to back Incitec bid

MELBOURNE, May 22 (Reuters) - Shareholders in Dyno Nobel Ltd DXL.AX, the world's No. 2 supplier of explosives, are set to approve a A$2.6 billion ($2.5 billion) takeover by fertiliser group Incitec Pivot Ltd (IPL.AX) on Thursday.

Industry sources said votes by Dyno's shareholders and optionholders were expected to go through easily.

Under the scheme of arrangement, more than 50 percent of all Dyno shareholders voting and 75 percent of the shares voted need to support the proposal.

Based on Wednesday's closing prices, Dyno shares were trading less than 1 percent above the offer price, indicating investors expect the deal to go ahead. Dyno shares were put on a trading halt ahead of the vote.

Incitec Pivot expects to take over Dyno Nobel on June 2, with trading in the expanded group's shares to begin the next day.

With Dyno Nobel in its fold, Incitec aims to better position itself to take advantage of surging demand for both fertiliser and explosives, both of which are made from the same nitrogen-based chemicals. ($1=A$1.04) (Reporting by Sonali Paul)