The Competition Commission has unconditionally approved a proposed merger whereby international explosives distributor Enaex intends to acquire JSE-listed petrochemicals company Sasol’s Explosives business.
Enaex commercialises, distributes and manufactures explosives and blasting agents. It provides logistics and technical advice in each of the processes to customers globally.
The Sasol Explosives business is a producer and supplier of explosives and initiation systems operating across sub-Saharan Africa. The business markets and distributes commercial explosives, a range of specialised blasting accessories, a diverse range of bulk explosives used in underground mines, opencast mines and quarries, as well as supplying value-added services to Southern Africa's leading mining companies.
The commission found that the proposed transaction was unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The commission also found that the proposed transaction did not raise any public interest concerns.
Sasol and Enaex previously announced that they would form a new company and Sasol would transfer its explosives business to the new company. Enaex, as a majority shareholder, would take over management and operational control of the new company.
Sasol in July last year selected Enaex as its preferred partner for the establishment of a joint venture.
This followed 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.