Glencore's bid for Chevron assets approved by the Competition Commission
Meanwhile, a rival bid from Sinopec has already been approved by the Competition Tribunal.
South Africa’s Competition Commission has approved Glencore’s $900 million bid for Chevron’s local and Botswana assets. China’s state-owned Sinopec is also in the running to secure the assets.
According to Reuters, Chevron agreed last year to sell its stake to Sinopec, before Glencore joined the table last minute, having secured a deal with minority shareholders, who backed it and exercised preemptive rights on the sale.
Assets in the deal include a 75 percent share in Chevron’s South African subsidiary, which runs a 100,000 barrels-per-day oil refinery in Cape Town, a lubricants plant in Durban, and 820 petrol stations and other oil storage facilities. It also includes 220 convenience stores across the two countries.
Both deals have received the green light from the Competition Commission, subject to several conditions including the preservation of jobs after the deal. The Competition Tribunal, which makes the final ruling on deals, must now decide whether to accept the Commission’s recommendations. The Tribunal has already approved Sinopec’s bid.
Pictured: Steven Kalmin, Glencore CFO