The South African Competition Tribunal approved Sinopec's purchase of Chevron's South African oil assets for US$900m. The transaction was signed in March 2017 and conditionally endorsed by the Competition Commission of South Africa in January 2018.
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, 220 convenience stores, oil storage facilities and 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. Once the deal completed, Sinopec plans to invest ZAR6bn (US$504m) over the next five years to develop a new refinery in South Africa’s Western Cape.