EDITORIAL: Why the Sinopec deal is intriguing
SA stands to be the base for the Chinese company’s African aspirations
Economic Development Minister Ebrahim Patel has now intervened several times in incoming foreign investment deals to extract public-interest conditions aimed at ensuring SA’s economy derives broader benefit from such deals. But the latest set of public-interest conditions he has negotiated with the China Petroleum and Chemical Corporation (Sinopec), which has made a $900m bid for the 75% of Chevron’s Southern African business that the US parent put up for sale, are particularly significant — and intriguing. The Sinopec bid, announced in March 2017, was a welcome show of foreign interest and confidence in one of SA’s more difficult industries, especially coming after Malaysian group Petronas failed in its attempt to sell its controlling stake in Engen to PetroSA a few years ago. The public-interest commitments that Patel and Sinopec announced last week seem to signal even greater confidence by the state-owned Chinese oil major, whose acquisition of Chevron SA, if implemented, would b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.