Commodity and mining group, Glencore, are taking over a 75% stake in Chevron’s CVX.N South Africa unit and all of Chevron Botswana, claim Reuters.
According to the news agency, the deal is inclusive of Chevron’s retail, manufacturing and industry supply business interest in the African Nations.
In a statement Glencore said: “Glencore believes that the assets provide an attractive downstream opportunity for its oil business.”
The deal, which will include Glencore retaining Chevron’s management team and workforce on the ground in South Africa and Botswana, will be funded using existing cash resources and is expected to close in mid-2018, say Reuters.
Glencore closed their statement be stating that they intend “to manage its overall oil asset portfolio to ensure that, including this transaction, net additional capital investment is limited to less than US$500m over the next 12 months.”