The Competition Commission of South Africa has conditionally approved Sinopec's purchase of Chevron's South African oil assets for US$900m. The transaction was signed in March 2017 but remained subject to regulatory approvals from the Competition Commission of South Africa and required implementation of the Right of First Refusal (ROFR) by the minority shareholders in Chevron South Africa.
Chevron offered to sell a 75% stake in its South African business unit within the frame of a three-year divestment program announced in 2014. These assets notably include a 100,000 bbl/d refinery in Cape Town, 820 Caltex service stations, oil storage facilities, a lubricants plant in Durban.
Chinese state-run oil company Sinopec will purchase the assets through its Hong-Kong based subsidiary SOIHL HK. Once completed, it will be the single largest acquisition of a controlling stake in a major South African company by a Chinese firm.
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