Sasol shareholders have approved a proposed agreement to form a joint venture with chemical company LyondellBasell Industries at its U.S Lake Charles Chemicals Project in a bid to pay down debt, Reuters reports.
LyondellBasell agreed last month to acquire a 50% stake of Sasol’s base chemicals business at Lake Charles for $2 billion and operate the newly formed joint venture.
As part of the agreement, the two companies will form a 50-50 joint venture which will take over the base chemicals business at Lake Charles. LyondellBasell will be the operator of the new JV firm.
Sasol, the world’s top manufacturer of motor fuel from coal, has been battling high debt amid lower oil and chemicals prices and falling fuel demand due to a country-wide lockdown to prevent the spread of COVID-19.