Glencore (GLNCY) has entered into an agreement with Off The Shelf Investments Fifty Six Proprietary Limited to acquire from OTS (i) a 75% stake in Chevron South Africa Proprietary Limited (CVX) and certain related interests and (ii) the entire issued share capital of Chevron Botswana Proprietary Limited following closing of OTS's exercise of its pre-emptive right to acquire the Assets from the Chevron group. During its acquisition process Glencore will be supporting OTS as their technical and financial partner.

The aggregate consideration is $973M. The Assets comprise the interests of the Chevron group in its manufacturing, retail and industrial supply business in South Africa and Botswana. Glencore believes that the Assets provide an attractive downstream opportunity for its oil business. The acquisition will include undertakings as to retention of the local management team and workforce. The consideration will be payable in cash on closing and will be funded from Glencore's own cash resources.

Glencore intends to manage its overall oil asset portfolio to ensure that, including this transaction, net additional capital investment is limited to less than $500M over the next 12 months, consistent with Glencore's conservative financial framework targets. The transaction is conditional on the receipt of all necessary regulatory approvals by OTS and Glencore and is expected to close in mid-2018. A further announcement will be made in due course.