Glencore in bid for 75% of Chevron SA
Miner and empowerment partner Glencore offers $973m, while Sinopec's deal seems to have folded
Global diversified miner and trader Glencore has launched a $973m cash bid to buy 75% of Chevron’s Southern African operations, which appears to trump the $900m deal Chinese oil major Sinopec did in March to buy the Chevron SA assets. The transaction comes after Chevron’s local black economic empowerment (BEE) partners, who own 25% of Chevron SA, reopened the sales process by exercising the pre-emptive right they have to buy the other 75%. Bloomberg reported on September 29 that there was at least one other potential bidder, aside from Glencore, but Glencore confirmed on Friday that it had entered into an agreement with Off The Shelf Investments (OTS) to buy the stake. OTS is the vehicle through which the BEE investors, which include African Legend Investments, Lithemba Investments and the South African National Taxi Council (Santaco), hold their stake. Prominent black entrepreneur Mashudu Ramano sits on the board of Chevron SA, but attempts to reach Ramano, African Legend, Lithemba...
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