Dentons advised Czech-based global chemicals producer Draslovka on its agreement to acquire the sodium cyanide business from JSE-listed petrochemicals giant Sasol. The value of the deal is over US$95 million. The transaction is expected to close in the first half of 2022 subject to the fulfilment of various conditions precedent, including approvals from the Competition Commission and South African Reserve Bank.

The acquisition from Sasol represents a major investment on the African continent and is part of Draslovka’s international expansion plan. Draslovka also plans to invest additional US$50 million into modernizing the factory, to enable it to manufacture products that currently have to be imported into South Africa. The funds will also be used to ensure the factory meets the highest international environmental standards.

Partners Petr Zákoucký (Prague) and Brandon Irsigler (Johannesburg) led Dentons’ cross-border team with assistance from partners Vanessa Jacklin-Levin and Alishka Singh and senior associate Robert Parring in Johannesburg and partner Jiří Tomola and senior associates Ivo Hartmann, Lucie Kubínyiová and Adam Přerovský in Prague. The legal team also included members of M&A, Regulatory and Environment, Energy, Finance and Tax practices in Johannesburg and Prague, including Joel Pandaro, Kirith Haria, Hugo McLachlan, Ameer Jassat, Muhammad Patel, Aabeed Abdullatief, Justina Bodláková, Jan Tylš, Michal Pelikán, Barbora Obračajová, Anna Urbanová and Petr Kotáb.

Petr Zákoucký commented, “We are delighted to have assisted Draslovka on this acquisition and played a role in supporting their strategic vision and helping them to achieve another milestone in their global growth agenda.”

Brandon Irsigler added “This transaction exemplifies Dentons’ ability to provide client in-depth advice in their own jurisdiction, as well as the deal site, essential for complex transactions in Africa.”

Pavel Brůžek, Chairman of the Board of Directors of Draslovka said, “We are grateful to have had the Dentons team by our side on this journey. They really put everything into this deal and the resources and skills they bring to bear are amazing. They are instrumental to our global growth.”

Dentons provided comprehensive buy-side advisory.  PwC acted as lead M&A and financial advisor.