News

Check out market updates

Glencore swoops $1bn deal for Chevron’s South Africa business

Commodities trader and miner Glencore has stepped ahead of Sinopec to be the buyer of Chevron’s assets in South Africa and Botswana in cooperation with a consortium of black economic empowerment (BEE) shareholders.

Glencore has joined forces with a consortium of BEE shareholders and an employee trust, which own 25% of the Chevron business in South Africa, to take control of a 100,000 barrel a day refinery in Cape Town and 820 gas stations operating under the Caltex brand in a deal worth $1 billion.

This represents a major coop for Glencore as Chevron has already agreed to sell the business to China Petroleum & Chemical Corp, known as Sinopec, report Reuters.

The swift change in the deal started when the BEE partner of Chevron exercised a pre-emption right and began looking for a partner to fund the buyout. To battle racial inequality, South Africa’s companies are required to have a BEE partner that holds around 25% of the stake.

Glencore announced the deal on Friday by stating it would pay $973 million for a 75% stake in the business, which has a 19% market share in the gas station sector.

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA Image