Competition Tribunal approves R11-billion Sinopec, Chevron deal

China’s Sinopec Corp got a major boost in its pursuit of Chevron’s South Africa and Botswana assets after the Competition Tribunal approved, with conditions, the nearly R11-billion million transaction on Friday.

State-owned Sinopec was competing for the assets against commodities trader and miner Glencore, which swooped in last October with a R11-billion bid following delays to Sinopec’s original agreement.

The transaction is subject to Sinopec investing R6-billion over five years to develop a refinery in the Western Cape, over and above Chevron’s current investment plans, the tribunal said in a statement.

The tribunal also said there should be no retrenchments as a result of the proposed transaction.

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

The deal also includes 220 convenience stores across South Africa and Botswana.

-Reuters