The AECI Group has agreed to sell its 50% shareholding in Crest Chemicals to its joint venture partner, Brenntag (Holding) BV, for a cash consideration of R390 million.
Crest has been a 50:50 joint venture between the two companies since 2001.
Crest is based in Midrand, Johannesburg, and is a distributor and reseller of chemicals to a broad range of South African industries including Industrial, Paint and Coatings, Food, as well as Mining and Water.
Commenting on the transaction Mark Dytor, AECI Chief Executive, said: “Crest has been a valuable asset in our Group’s portfolio for several years. However, both shareholders have now agreed that the business will be better served under a single owner.”
Closing of the transaction is subject to certain conditions precedent, including approval by South Africa’s Competition Commission. It is expected to be finalised before the end of 2019.
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