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.