Sinopec and Chevron deal gets green light
The deal has been given the green light, but could still be trumped by a rival bid from Chevron SA’s empowerment shareholders, who are backed by Glencore
Chinese oil giant Sinopec has won regulatory approval for its $900m bid for SA’s second-largest oil company, Chevron SA— but it could still be trumped by a rival bid from Chevron SA’s empowerment shareholders, who are backed by Glencore. The Competition Tribunal on Friday gave the go-ahead to the Sinopec deal, after Sinopec agreed to a couple of extra conditions in response to complaints by Chevron SA’s branded marketers. The 10 branded marketers, mini oil companies that control more than two-thirds of the fuel Chevron retails in SA, had complained at tribunal hearings that they had not been adequately consulted and were concerned about their future, especially given Sinopec’s ultimate intention to rebrand Chevron SA’s 885 Caltex filling stations. The new conditions that have been agreed on aim to ensure Sinopec picks up some or all of the rebranding costs of the filling stations and does not change any contracts with the branded marketers to their detriment. These conditions add to...