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Sinopec rumored to be nearing deal to buy Chevron’s South African assets

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China Petroleum and Chemical Corp. (Sinopec) is rumored to be nearing a deal to buy a majority stake in Chevron Corp.’s South African assets, which are estimated to be worth USD1 billion. The remaining 25% interest is held by a consortium of Black Economic Empowerment shareholders and an employee trust. Financial advisor Rothschild & Co. is assisting Chevron on the sale.

If the deal is finalised, it will give Sinopec its first refinery asset in Africa, extending its global fuel distribution network.

Sinopec declined to comment.

Plans to sell the stake in the South African business, which includes a 110,000 barrel-per-day refinery in Cape Town, South Africa, were first announced in January 2016.

Besides the Cape Town refinery, Chevron has interests in a lubricants blending plant in Durban and a network of Caltex service stations, making it one of South Africa’s top five petroleum brands.

Chevron spokesman Braden Reddall said “the process of soliciting expressions of interest in the 75% shareholding is ongoing.”

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