The state-owned Central Energy Fund (CEF) has welcomed the Competition Tribunal’s unconditional approval of subsidiary Strategic Fuel Fund’s (SFF) proposed deal to acquire a 50% stake in bp Southern Africa’s Cape Town terminal assets.
The deal involves joint ownership and control of the terminal and was given the green light on August 3.
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CEF Group CEO Ishmael Pula said in a statement on Sunday (Aug 14) that the acquisition is part of the group’s security of supply mandate, which aims to ensure access to critical infrastructure and products at an affordable cost.
Godfrey Moaghy, CEO of SFF, said the merger would pave the way for the fuel fund to diversify its income stream in line with its strategic objectives.
“Through this asset, SFF will also be able to import finished products to mitigate risks associated with product shortages as a result of the closure of local refineries,” he added.
Maagi said the SFF will give previously disadvantaged South Africans who want to be involved in the petrochemical business access to infrastructure.
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CEF noted that the bpSA terminal in Cape Town has a capacity of around 86 million liters which includes diesel, petrol, jet fuel and kerosene.
It says the capacity is 1.6 billion liters per year and represents about 30% of the available terminal infrastructure capacity for Cape Town’s growing fuel market.
Nondumiso Lehutso is a Moneyweb intern.