The Competition Tribunal on Friday approved a merger involving Glencore South Africa Oil Investment (Glencore SA Oil) and Chevron South Africa (Chevron SA).
The transaction involves Glencore SA Oil acquiring 75% of the issued share capital of Chevron SA, from Off The Shelf Investments.
Glencore’s business includes an energy products business segment relating to oil mining and oil production activities. This involves trading in crude oil, refined oil and natural gas. Its activities in South Africa include supplying crude oil, petrol and diesel to local customers and purchasing petroleum products from refineries for export only.
Chevron SA is a refiner and supplier of petroleum products in South Africa. It operates a crude oil refinery in Cape Town, where it produces petroleum products.
Additionally, Chevron SA has a lubricant manufacturing plant in Durban. It markets its products in South Africa under the Caltex brand.
Glencore assured that it would keep Chevron SA’s head office in South Africa and that it will be operated substantially on a standalone basis. There will also be no retrenchments as a result of the merger.
Other terms stipulated by the tribunal include that Chevron SA must invest, within five years, R6-billion to develop the Western Cape refinery, over and above current investment plans.