As expected and reported by PetrolWorld on Friday 17th March, Sinopec has agreed to purchase a 75% stake in Chevron South Africa for us$900m
Chevron stated that it selected Sinopec as the preferred bidder because it offered better terms and conditions, plus pledged to maintain the South African and Botswana businesses as going concerns.
As well as the refinery, Sinopec Corp is buying a lubricants plant in Durban, a fuel retail network of 820 fuel service stations and 220 convenience stores in SA and Botswana. PetrolWorld had raised the question last week of the fuel brand that would apply to the network and this has now been answered with a special agreement to use the Caltex Brand for at least 5 years.
The deal includes storage terminals but no details or break down were available. It will hold 75% of the South African assets and 100% of the Botswana assets, subject to regulatory approval of the deal. The other 25% of Chevron’s South African assets are owned by a consortium including the South African National Taxi Council, African Legend, Lithemba and Ditikeni and by an employee trust. PW230317