Sasol has entered into an agreement to sell its Nitrates business to Enaex Africa, advancing the South African energy and chemicals company’s portfolio optimization strategy while maintaining a minority interest in the operation.
The transaction includes the primary ammonia conversion plants in Secunda and Sasolburg, which convert ammonia into feedstock serving fertilizer and explosives markets. Sasol said the proposed sale is expected to be value-accretive to its South African portfolio.
Following the transaction, Sasol will retain a 23% interest in the joint venture. Financial terms were not disclosed.
Enaex Africa is part of the global Enaex Group, which provides explosives and blasting solutions to mining customers and has more than 100 years of industry experience.
The transaction expands an existing relationship between the two companies that began in 2020. Sasol said the divestment will allow it to focus more closely on its strategic priorities while positioning Enaex Africa to support the Nitrates business’s future development.
Sasol and Enaex Africa intend to work together on the transition for employees, customers, suppliers and other stakeholders.
Completion remains subject to regulatory approvals and other conditions precedent, with the companies planning to provide additional information once approvals have been secured and the transaction reaches the implementation stage.
KEY QUOTE:
“This transaction is an important step in delivering our portfolio optimisation strategy. We are confident that Enaex Africa is well positioned to support the future growth of the Nitrates business, given its industry expertise, market access and strategic focus. Throughout this process, our priority remains the wellbeing of our employees, maintaining business continuity and ensuring a responsible transition for all stakeholders. We look forward to the next stage of this successful partnership.”
Simon Baloyi, President and Chief Executive Officer of Sasol
