JOHANNESBURG - Glencore is among companies considering bidding for Chevron Corporation’s South African assets after a proposed sale to China Petroleum & Chemical Corporation stalled when local partners said they will exercise a pre-emptive right, according to two people familiar with the matter.
China Petroleum said in March it agreed to pay R12.19 billion for Chevron’s 75% stake in the assets, which include Chevron’s oil refinery in Cape Town and network of retail-gas outlets.
The action by Chevron’s black economic empowerment partners, who own the remaining 25% of the assets, has reopened the sales process, said the people, who asked not to be named because the information isn’t public.
There’s at least one other potential bidder in addition to Glencore, the people said.
A Glencore spokesperson said the company doesn’t comment on market speculation and a Chevron spokesperson declined to comment citing a confidentiality agreement covering the sales process.
Representatives from BEE partners African Legend Investments and Lithemba Investments, couldn’t be reached for comment.
China Petroleum, known as Sinopec, agreed to buy Chevron’s holding in the South African assets as part of a plan to expand in international markets.