Sasol, Ltd. (Sandton, South Africa) has entered into a sale agreement with Enaex Africa (Dunkeld, South Africa) for the sale of its Nitrates business, which includes the primary ammonia conversion plants in Secunda and Sasolburg that convert ammonia into feedstock for the fertilizers and explosives markets. The proposed transaction is expected to be value-accretive to Sasol’s South African portfolio and supports the delivery of Sasol’s portfolio optimization strategy. Sasol will retain a 23% interest in the joint venture.
Enaex Africa is part of the global Enaex Group (Santiago, Chile), a premium provider of explosives and blasting solutions with more than 100 years of mining expertise, supporting customers across multiple markets worldwide. The proposed transaction builds on the successful partnership between Sasol and Enaex Africa that began in 2020, while enabling Sasol to focus on its strategic priorities. Sasol and Enaex Africa will work closely together to support a smooth transition for employees, customers, suppliers, and other stakeholders.
The transaction remains subject to regulatory approvals before implementation can occur. The parties will provide further updates once the required approvals have been obtained and the transaction reaches implementation stage.
Commenting on the transaction, Simon Baloyi, President and Chief Executive Officer of Sasol, said: “This transaction is an important step in delivering our portfolio optimization 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.”
Francisco Baudrand, Chief Executive Officer of Enaex Africa, said: “We are excited about this next chapter in our partnership with Sasol and the opportunities it creates for Enaex Africa. Bringing these capabilities into our business will strengthen our value chain, enhance security of supply, and further improve how we serve our customers. We look forward to building on the strong foundation we have established and taking the partnership into its next phase.”