SA’s Competition Commission on Wednesday gave the go ahead, with conditions, for ASP Isotopes’ (ASPI) proposed acquisition of natural gas and helium producer Renergen.
US-based and Nasdaq-listed ASP Isotopes announced plans in May to acquire all Renergen’s issued shares.
The deal, supported by more than 35% of Renergen shareholders and expected to close in the third quarter of 2025, will make Renergen a wholly owned subsidiary of ASPI, with the current management team remaining in place and CEO Stefano Marani joining ASPI’s executive team in the US.
A key feature of the deal is $750m in US government debt funding to expand helium production. Should the scheme of arrangement not be approved, ASPI has indicated it may pursue a general standby offer to acquire up to 100% of Renergen’s shares.
The Competition Commission’s approval clears a key regulatory hurdle for the deal, though it comes with conditions that ASP Isotopes has accepted. The details of those conditions have not been made public.
The transaction comes as global demand for helium and stable isotopes rises, with both seen as critical to industries such as semiconductors, medical imaging, energy and advanced manufacturing.
Helium has become a sought-after commodity, with a 2024 report by market research firm IDTechEx indicating global demand is expected to almost double in 10 years.
Renergen’s helium resources and ASPI’s enrichment technology are expected to be integrated as part of the deal.
In June, Renergen awarded preferred bidder status for the second phase of the company’s gas and helium project at its Virginia Gas Project in the Free State.
The He4u consortium, comprising Chart Industries, WBHO and Aurex Constructors, would be responsible for the design, procurement, delivery, construction and commissioning of phase 2, “leveraging their collective expertise to drive the project forward”, the company said.
Chart Industries, a US-based engineering equipment company in the clean energy and industrial gas markets, will provide helium liquefier and LNG liquefaction technologies, while WBHO will use its construction capabilities and experience in engineering, procurement and construction projects.
Aurex Constructors, a Midrand-based construction company, will provide structural, mechanical, electrical, instrumentation and piping services.
Renergen bought the Virginia Gas Project in the Free State in 2015. It is SA’s first onshore natural gas exploration and production project. It started producing LNG in November 2022 and achieved initial helium liquefaction in January 2023.
Phase 2 represents a substantial scale-up from the initial phase.
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