Sasol sells air separation units to Air LiquideChristian Fernsby ▼ | July 29, 2020
Sasol Ltd. said it has agreed to sell air separation units in Secunda to Air Liquide SA for $514.3 million.
Air Liquide will supply the gases to SSA´s operations under a long-term gas supply agreement. It is anticipated that Air Liquide´s expertise would allow, in coordination with Sasol, a targeted reduction in greenhouse gas emissions (GHG) associated with the oxygen production over the coming years, which will contribute towards the GHG reduction for the overall Secunda site.
Air Liquide has been present on the Secunda site since 1979, and already owns and operates the seventeenth air separation unit, which was commissioned in January 2018. Air Liquide owning and operating the full air separation fleet is expected to provide optimisation of management of the assets and energy efficiency benefits.
The transaction remains subject to further due diligence, finalisation of relevant definitive agreements and associated internal and external approvals, including the Competition Commission and the South African Reserve Bank. The parties aim to negotiate final agreements by mid August, and a further announcement will be made at that time. The transaction is currently expected to close within financial year 2021. ■