Sinopec, Chevron deal - worth $900 million - to go ahead

The Competition Tribunal has approved Sinopec's acquisition of Chevron assets, with conditions.

China’s state-owned Sinopec Corp went head to head with commodities trader and miner Glencore, after Chevron’s South Africa and Botswana assets, with the Chinese corporation coming out tops. This after South Africa’s Competition Tribunal approved the $900 million transaction – with some conditions, including no retrenchments.

According to Reuters, the transaction is subject to Sinopec investing $504 million (R6 billion) over five years to develop a refinery in South Africa’s Western Cape, on top of Chevron’s current investment.

As part of the deal, Sinopec will buy a 75-percent share in Chevron’s South African subsidiary, which runs the 100,000 barrel per day (BPD) refinery, a lubricants plant in Durban and 820 petrol stations and oil storage facilities.

Pictured: Pat Yarrington, Chevron Corporation CFO