Off The Shelf, which is supported by Glencore, has been allowed to acquire a majority stake in Chevron SA- a deal which will make it the first majority black-owned and managed oil company in South Africa. The competition Tribunal announced that it had approved Off The Shelf’s bid to acquire a 75% stake in the company, in a deal valued at almost $1 billion.
Once the transaction takes places, Off The Shelf, Chevron SA’s empowerment partner led by Mashudu Ramano, will see its shareholding in Chevron SA increase from 23 percent to 98 percent. Romano was formerly the chair of Johnnic Communications and Airports Company SA.
Initially, Glencore had backed Off The Shelf to bid for the stake, with an intention to ultimately purchase the majority shareholding from it. But a report submitted to the Tribunal by the Competition Commission, noted that Glencore’s involvement in the matter and its intention to acquire the stake will also require approval.
BusinessDay SA reveals that Glencore was unsuccessful in its previous bid for the Chevron SA stake, which includes assets such as a 110,000 barrel-a-day refinery, a lubricants plant, 820 petrol stations and oil storage facilities.
Glencore which lost to Hong Kong based Sinopec, managed to get back in the game as Off The Shelf’s technical adviser. Off The Shelf, which as Chevron SA’s empowerment exercised its right of first refusal to the Sinopec bid, was provided funding by Glencore.
For as long as it remains a shareholder in Chevron SA, Off The Shelf has undertaken to remain at least 90 percent black-owned. It was also revealed that a development fund of $15 million will be established.