Commodity trader and Glencore’s Black Beethoven Empowerment (BEE) partner, Off The Shelf Investments (OTS), completed the $ 973 million acquisition of Chevron’s downstream assets in South Africa.
With this acquisition funded by Glencore, OTS increases its stake from 23 to 98 percent in Chevron South Africa (CSA). The remaining 2% is held by employees. The deal comes after a barrage against the Chinese Sinopec who wanted to acquire 75% of CSA.
The acquisition includes a 100,000 bpd refinery in Cape Town, a lubricant plant in Durban and 850 service stations and storage facilities. The transaction also gives OTS a 100% stake in Chevron Botswana.
Under the terms of the agreement, OTS has committed to invest R6 billion ($ 500 million) in the development of the Cape Town refinery. Subsequently, CSA will be called Astron Energy ..
