Glencore PLC (GLEN.LN) said Friday that it has entered an agreement with Off The Shelf Investments Fifty Six to buy a 75% stake in Chevron South Africa Pty. Ltd. and the entire issued share capital of Chevron Botswana Pty. Ltd.
The aggregate consideration of the two operations is $973 million, payable in cash on closing and funded from Glencore's own cash resources.
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The commodities producer and marketer expects the transaction to close in mid-2018.
Glencore said that the assets provide an attractive downstream opportunity for its oil business.
The company added that it intends to manage its overall oil asset portfolio to ensure that net additional capital investment is limited to $500m over the next 12 months.
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(END) Dow Jones Newswires
October 06, 2017 06:12 ET (10:12 GMT)