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Sasol Acquires Condea From 1 March 2001

Release Date: 01/03/2001 09:05:02      Code(s): SOL
SASOL LTD
NEWS RELEASE
1 March 2001
Johannesburg, South Africa  -  Sasol Limited announced today that the
acquisition of RWE-DEA's chemical business known as Condea was completed on 28
February 2001.
Condea is a leading supplier of fatty alcohols, surfactants, linear
alkylbenzene, high purity aluminas and oxygenated solvents, with total sales of
Euro 2,6-billion (R16,5-billion) in 1999/2000.  It has production sites in
Germany, Italy, the Netherlands, the USA and China.  With this acquisition
Sasol will strengthen its position as a global player and enhance its
competitiveness in international chemical markets.  The combined Sasol/Condea
enterprise will employ about  30 000 people.
The purchase was financed out of internal funds and loans raised offshore at
competitive rates.  The transaction became unconditional after the necessary
conditions precedent had been fulfilled, including approval by the South
African Reserve Bank, approval in terms of European Union Competition Law and
compliance with the US Hart Scott Rodino Anti-Trust Improvements Act.
Pieter Cox, managing director and chief executive officer of Sasol Limited,
said: "We are pleased that the various approvals have been granted to enable us
to finalise the transaction.  The acquisition fits well with our corporate
growth strategy, provides a hedge against crude oil price movements and will
substantially increase Sasol's foreign derived income from the present level of
10% to about 35%.
A significant portion of Condea's turnover is directly related to the
surfactant value chain.  This value chain has long been identified as a growth
area for Sasol's alpha olefins business, which is why the decision was taken to
build a R1,0-billion detergent alcohol plant at Secunda in South Africa, with a
capacity of 120 000 tons per year.  The plant is scheduled for commissioning
early in 2002.  The surfactant business of Condea shows an excellent fit with
Sasol's detergent alcohol business and will result in stronger market positions
in detergent alcohols, linear alkyl benzene and paraffins.
The Condea solvents portfolio also fits well with Sasol's present solvents
business.  This includes ethanol, iso-propanol, methyl-ethyl-ketone and glycol
ethers.  The solvent markets which Condea has developed are mainly in Europe
which will result in the realisation of marketing and logistical synergies with
the present business of Sasol Solvents whilst, at the same time, diversifying
its production base.
Ralph Havenstein, managing director of Sasol Chemical Industries Limited (SCI),
the chemical manufacturing and marketing arm of the Sasol Group, said: "The
acquisition will lead to many synergies.  These include better access to
technology, improved marketing access for Sasol's detergent alcohol, solvents
and alpha olefins as well as optimisation of logistics, marketing and
distribution channels and corporate services.  These synergies amount to about
R953-million (Euro 150-million) (net present value) and the effect on Sasol's
earnings is expected to be positive in financial year 2002 / 2003.  We have
also put a strong management team in place with the necessary talent to lead
SCI to new heights".
He added that Sasol Olefins and Surfactants, Sasol Solvents and Sasol Polymers
will continue to be the high-growth divisions within SCI.  Condea gives Sasol a
strong foothold in European markets, with Sasol Polymers spearheading growth
development in Asia.
As a result of the acquisition, SCI has restructured its management team as
follows:
* Sasol's alpha olefins and surfactants businesses have been combined into one
division called Sasol Olefins & Surfactants.  Harry Hyatt will head up this
division.
* The solvents businesses of Sasol and Condea have been combined under
Anton Putter, Managing Director of Sasol Solvents.
* Ralph Havenstein remains managing director of SCI and will take
specific responsibility for Sasol Olefins and Surfactants, Sasol Solvents,
Merisol (phenolics), Schumann-Sasol (waxes) and the various sales offices of
SCI around the world.
A detailed structure of SCI is available on Sasol's web site at www.sasol.com
.
The Condea name will now be replaced by the Sasol name.
End
Contact persons:  Mike Tisdall        Tel +27-11-4413835
                  Anke Reif               +49-4063751-408
                  Alfonso Niemand         +27-11-4413218
Sasol, established in 1950, is a world-leader in the commercial production of
liquid fuels and chemicals from coal and crude oil.  The company has a turnover
of more than US$6-billion per year and is listed on the JSE Securities Exchange
(SOL) with a market capitalisation of more than US$5-billion and on NASDAQ
(SASOY) in New York.  Sasol manufactures more than 200 fuel and chemical
products at its plants in Sasolburg and Secunda in South Africa as well as at
several other plants abroad.  Its products are exported to more than 90
countries around the world.  The company has developed world-leading technology
for the commercial production of synthetic fuels and chemicals from low-grade
coal as well as the conversion of natural gas to environment-friendly diesel
and chemicals.
Internet address:   www.sasol.com



                                        
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