South African vitality and chemical compounds conglomerate Sasol, led by CEO Fleetwood Grobler, faces a significant setback in its efforts to divest its worthwhile sodium cyanide enterprise to Czech Republic-based Draslovka Holdings in a deal valued at R1.46 billion ($77 million).
The Competitors Tribunal has issued an order prohibiting the proposed intermediate merger between Sasol and Draslovka Holdings, citing issues about pricing results that might adversely have an effect on South African gold mining corporations.
Sodium cyanide, an important chemical compound utilized in extracting valuable metals corresponding to gold and silver, is pivotal in South Africa’s gold mining business. Sasol presently maintains a monopoly within the manufacturing of liquid cyanide inside the nation, making it a essential provider to gold mining operations.
The Competitors Fee (CompCom), an unbiased regulatory authority, had beforehand voiced apprehensions about this transaction. In 2021, CompCom warned that the merger might result in vital pricing impacts, probably putting South African gold mining firms at a drawback.
In an announcement, the Competitors Tribunal famous, “Sasol has a monopoly place within the manufacturing of liquid cyanide in South Africa, and the gold mining sector relies on Sasol for the availability of liquid cyanide. Concerning the proposed transaction, Sasol would have provided sure key inputs required within the manufacturing of sodium cyanide to Draslovka.”
Sasol, headquartered within the prosperous Gauteng Province of Sandton, is a number one built-in vitality and chemical compounds group, recognized for its manufacturing of liquid fuels, chemical compounds, and electrical energy, and its function as a know-how developer in artificial fuels.
Underneath the management of Fleetwood Grobler, the South African conglomerate operates throughout 33 nations and employs a worldwide workforce of 30,100. In current occasions, Grobler, a minority shareholder in Sasol, has been main Sasol’s transition towards cleaner and renewable vitality methods.
Sasol had initially introduced its intention to promote its worthwhile sodium cyanide enterprise to Draslovka in July 2021, with the deal valued at R1.46 billion ($77 million).
In response to CompCom’s rejection later that yr, Sasol argued that the sale was in the perfect curiosity of its native cyanide enterprise, employment alternatives, and clients, including that Draslovka’s involvement would enhance the enterprise and foster competitors inside the sector.