Africa Oil & Gas: Sinopec offers $900m to in exchange of 75% of Chevron South Africa assets

 

A Sinopec gas station stands in front of a Sinopec oil refin
A Sinopec gas station stands in front of a Sinopec oil refinery

China Petroleum and Chemical Corporation (Sinopec) subsidiary SOIHL HK has just offered $900-million  to acquire 75% interest in Chevron South Africa (CSA). The proposed deal is under consideration by the Competition Tribunal which has already promised its decision on Thursday.

Sinopec is a significant Chinese manufacturer and supplier of petroleum and petrochemical products, and is also the largest oil refinery company and the second-largest chemicalscompany in the world.

CSA, a firm incorporated in South Africa, is owned by an American firm Chevron Global Energy, which is ultimately controlled by the Chevron Corporation. CSA is active in the market for the refining and production of petroleum productsat its Cape Town refinery and and owns a lubricants blending plant in Durban.

Off The Shelf Investments Fifty-Six and the CSA Employees Participation Plan are minority shareholders in CSA.

The Competition Commission has proposed that the merger be approved with conditions.

Sinopec last month committed to a R6-billion upgrade of the CSA Cape Town refinery, if its acquisition bid succeeds, as part of a set of public-interest conditions negotiated with Economic Development Minister Ebrahim Patel in terms of the Competition Act.(source: miningweekly.com)

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