Integrated energy and chemicals company Sasol and Enaex, a subsidiary of the Sigdo Koppers Group, have concluded negotiations to establish a joint venture (JV).
The companies will file an application with the South African Competition Commission to seek approval for the merger.
If approved, Sasol and Enaex will form a new company and Sasol will transfer its explosives business to the new company as a going concern. Enaex, as majority shareholder, will take over management and operational control of the new company.
Meaningful participation for broad-based black economic empowerment has also been catered for in the shareholding structure in line with South Africa’s transformation goals.
Sasol in July selected Enaex as its preferred partner for the proposed establishment of a JV.
This follows after Sasol, through a detailed asset review in 2017, identified its explosives business as having growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with an explosives brand.
Enaex has almost a century’s experience in the global explosives market with its core business being ammonium nitrate production, explosives production and blasting services, making it 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.
By Tasneem Bulbulia
Source: Creamer Media’s Engineering News
The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its own debt with proceeds received from a planned external financing by Nobian.
Trinseo became a producer of the resin when it acquired Arkema’s PMMA business. It announced that it closed on the €1.14bn deal earlier this month.
As part of the EU’s Single-Use Plastic Directive (SUPD), it will become mandatory for caps and lids to remain attached to all beverage containers up to three liters in capacity from 2024.