Chevron & Sinopec's South Africa Deal Receives Green Signal
Zacks Investment Research | Jan 04, 2018 09:33PM ET
Chevron Corporation's (NYSE:CVX) efforts to divest its stake in its South Africa business to China Petroleum & Chemical Corporation (NYSE:SNP) , better known as Sinopec, has been approved by the country’s Competition Commission.
Notably, Sinopec will acquire 75% stake in the assets through its subsidiary, SOIHL Hong Kong Holding Limited. With the completion of the deal, SOIHL — a manufacturer and supplier of petroleum and petrochemical products — will enter the South African petroleum market.
In 2016, Chevron had stated its intention to unload 75% interests in its South Africa assets as part of its three-year divestment goals announced in 2014. Many energy firms like France’s integrated oil and gas major TOTAL S.A. (NYSE:TOT) , Switzerland-based diversified resource company, Glencore (LON:GLEN) PLC (OTC:GLNCY) and Russian oil trader, Gunvor Group Ltd had put in bids to snap up stakes in Chevron’s South Africa business. However, Zacks Investment Research
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