[South Africa] Sasol, Enaex successfully negotiates explosives business deal, harnesses direct foreign investment
Sasol and Enaex have successfully completed negotiations, whereafter an application to the Competition Commission will be submitted for approval of the proposed joint venture.
Once Competition Commission approval is received, Sasol and Enaex will form a new company and Sasol will transfer its explosives’ business, to the new company as a going concern.
In 2017, Sasol commenced a detailed asset review to ensure all assets in the company’s global portfolio deliver against stringent financial metrics and are aligned with the company’s growth strategy.
In line with this review, Sasol’s explosives business was identified as having substantial growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with a world-class explosives brand.
Following a stringent evaluation process, Enaex S.A., a subsidiary of the Sigdo Koppers Group, was selected as Sasol’s preferred partner to explore a possible formation of a joint venture.
Enaex brings almost a century’s experience in the global explosives market with their core business being Ammonium Nitrate production, explosives production and blasting services, making them one of the few explosives companies in the world that can produce and offer the entire spectrum of products and solutions to execute the blasting process. Enaex, as majority shareholder, will take over management and operational control of the new company.
Meaningful participation for BBBEE (initially up to ~ 26%) has also been catered for in the shareholding structure in line with South Africa’s transformation agenda, which is fully supported by Sasol and Enaex.