Johannesburg — SASOL Nitro, a division of Sasol Chemical Industries, intends to sell regional fertiliser blending plants by August next year, the division said yesterday.

The sale of the assets removes Sasol Nitro from certain fertiliser retail markets. Sasol Nitro agreed to divest from the plants - in Bellville, Durban, Kimberley, Potchefstroom and Endicott - as part of a settlement with the Competition Commission. The plants would be sold as going concerns.

The settlement involved allegations of abuse of dominating the market, exclusionary conduct and price discrimination in the supply of ammonia and derivative fertiliser products.

The sale of the assets is part of the restructuring of Sasol Nitro in terms of the settlement agreement. "We are confident of our ability to implement these changes in a way that we believe will be beneficial to the South African fertiliser and agriculture industries at large," Sasol Nitro MD Marius Brand said.

Sasol Nitro said that it had received "significant" interest from parties regarding the possible sale of its regional fertiliser blending plants.

The company has started inviting interested parties to submit proposals for the purchase of the plants. The company said in an advertisement that it had selected a potential buyer for the Potchefstroom facility.

"This should not be construed as a final decision on the sale of the plant as it is still subject to successful negotiations of the sale," it said.

Sasol Nitro's fertiliser business manufactures nitric acid, ammonium nitrate solution, ammonium sulphate and limestone ammonium nitrate.

Sasol Nitro said it could continue with the production of limestone ammonium nitrate, ammonium sulphate "and a range of ammonium nitrate and ammonium sulphate-based liquid and granular NPK fertiliser blends".