The South African Competition Tribunal has approved Glencore's proposed US$973m acquisition of Chevron's South African retail and refining assets. This landmark decision makes Glencore the leading contender in the race for the assets against the Chinese state-run company Sinopec, whose US$900m rival proposal for a 75% interest in the assets as well as Chevron's assets in Botswana was also approved by the Competition Tribunal in March 2018.
Glencore's bid is supported by its black economic empowerment (BEE) partner Off The Shelf Investments 56 (OTS), the minority shareholder in Chevron's assets. OTS has a "first right of refusal" to close the transaction.
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.
Interested in World Refineries?
Use this powerful business intelligence tool to assess current and future production capacities of oil products by country and by zone. Gain insight into companies' asset portfolios and future trends for refined oil production capacities, giving you the ultimate edge for strategy and decision-making.