Mining and commodities company Glencore agreed to acquire a 75 percent stake in Chevron South Africa and all of Chevron Botswana for $973 million, the company announced Friday. The deal is expected to close in mid-2018.
The remaining 25 percent interest in Chevron South Africa will be held by a consortium of Black Economic Empowerment shareholders and an employee trust in accordance with South African regulations.
The businesses involved in the transaction include all of Chevrons manufacturing, retail and industrial supply operations in South Africa and Botswana. This includes a finished lubricants blending plant and laboratory in Durban, South Africa, and a broad network of coastal shipping, depots and pipelines with significant crude delivery and storage infrastructure at Saldanha Bay, and Cape Town, South Africa, the press release noted.
The South Africa business also has a 100,000 barrel per day crude processing refinery in Cape Town that produces gasoline, diesel, jet fuel, liquefied petroleum gas and other products. Chevron South Africas 820 retail sites, which are primarily owned by the operators, and Botswanas 30 retail sites are included in the agreement as well. Chevrons Caltex brand is one of South Africas top petroleum brands.
Glencore intends to keep all local management and workforce at both companies. The company declined to comment further on the agreement.
This deal comes roughly seven months after Sinopec signed a deal to make nearly the same acquisition – a 75 percent stake in Chevron South Africa and a 100 percent stake in Chevron Botswana. Chevron declined to yesterday to explain why that deal fell apart, and Sinopec was not able to comment by deadline.
Glencore is a global diversified natural resource company, operating roughly 150 mining and metallurgical sites, oil production assets and agricultural facilities. The Swiss companys customers are industrial consumers primarily in the steel, power generation, oil and food processing markets.