Glencore PLC, Baar, Switzerland, has entered a deal to acquire Chevron Corp.'s majority ownership in Chevron South Africa (Pty.) Ltd., which operates a 110,000-b/d refinery at Milnerton, in Cape Town, South Africa, as well the entirety of Chevon’s interest in downstream assets in Botswana.
Glencore will purchase 75% stake in Chevron South Africa as well as 100% ownership interest in Chevron Botswana (Pty.) Ltd. from Off the Shelf Investments Fifty Six (RF) (Pty.) Ltd. (OTS) of Johannesburg following OTS’ previous exercise of its preemptive right to acquire the assets from Chevron, the Swiss company said.
Valued at $978 million, the deal is scheduled to close in mid-2018 pending receipt of all necessary approvals.
Glencore, which plans to retain local management teams and workforce members as part of the deal, said acquisition of the manufacturing, retail, and industrial supply business in South Africa and Botswana provides an attractive downstream opportunity for its oil business.
Alongside a stake in the Cape Town refinery, Glencore’s purchase will include ownership interest in the following Chevron South African and Botswanan assets:
• A finished lubricants blend plant and base oil terminal in Durban, South Africa.
• A broad network of coastal shipping, depots, and pipelines with major crude delivery and storage infrastructure at Saldanha Bay and Cape Town Harbor.
• A total of 820 retail outlets in South Africa as well as another 30 in Botswana.
OTS presumably will retain its current 25% interest in the South African assets.
Contact Robert Brelsford at [email protected].
