Sasol, Enaex Africa Sign Agreement For Sale Of Sasol’s Nitrates Business

South African integrated energy company Sasol has entered into an agreement with Enaex Africa to sell its Nitrates business, which includes primary ammonia conversion plants in Secunda and Sasolburg that convert ammonia into feedstock for the fertiliser and explosives markets.

The proposed transaction is expected to be value-accretive to Sasol’s South African portfolio and supports the company’s portfolio optimisation strategy.

Sasol will retain a 23% stake in the joint venture, while Enaex Africa will become the majority partner.

Enaex Africa is part of global explosives and blasting solutions provider Enaex Group, which has more than 100 years of experience in the mining industry and serves customers across multiple markets worldwide.

The transaction builds on a partnership between Sasol and Enaex Africa that began in 2020, while allowing Sasol to focus on its strategic priorities.

Sasol and Enaex Africa said they would work closely together to ensure a smooth transition for employees, customers, suppliers and other stakeholders.

The transaction remains subject to the necessary regulatory approvals before it can be implemented. The companies said they would provide further updates once the required approvals have been obtained and the transaction reaches the implementation stage.

“This transaction is an important step in delivering our portfolio optimisation strategy,” Sasol President and Chief Executive Officer Simon Baloyi said.

“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,” Baloyi said.

Enaex Africa Chief Executive Officer Francisco Baudrand said the transaction marked “the next chapter” in the company’s partnership with Sasol.

“Bringing these capabilities into our business will strengthen our value chain, enhance security of supply and further improve how we serve our customers,” Baudrand said.

“We look forward to building on the strong foundation we have established and taking the partnership into its next phase.”