Competition Tribunal approves Glencore’s Chevron deal
However, the tribunal has added new BEE and trade conditions
The Competition Tribunal has approved Glencore’s $1bn acquisition of the Chevron SA assets, subject to a range of conditions. Notably, Glencore will have to beef up the black ownership of the business to 35%. The resources giant must also use its global footprint to give SA-manufactured goods access to overseas markets. The assets, in which Glencore will acquire a 75% stake, span SA and Botswana and include a 110,000 barrel per day (bpd) refinery, a lubricants plant, 820 petrol stations, and oil storage facilities. The conditional approval is the third the tribunal has awarded in relation to Chevron SA’s assets in the past year. A year ago, the tribunal conditionally approved the acquisition of Chevron SA by Sinopec, a Hong Kong-based oil company. However, Glencore bankrolled Off The Shelf Investments — Chevron SA’s empowerment partner with a 23% stake — to exercise its right of first refusal of the deal. With a $1bn loan from Glencore, and another conditional approval from the trib...
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