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The transaction was reportedly concluded on November 1 this year. The new owners have informed stakeholders they are the new management.
But the Ministry of Youth Development, Indigenisation and Empowerment says it only approved the acquisition of Engen Zimbabwe by the Croco Motors consortium, led by Mr Moses Chingwena – not the Chevron takeover.
Under the Indigenisation and Empowerment Act, mergers and acquisitions of foreign-owned companies require the approval of the minister.
In the case of those in the same industry, approval is also required of the Competition and Tariff Commission.
Herald Business has reliable confirmation that Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere rejected the Chevron deal because it would not be “in the public interest”.
The reason was that it would deny other indigenous Zimbabweans an opportunity to participate in the broad-based indigenisation programme.
“They are proceeding to implement what was not approved by the minister,” a source familiar with the deal said yesterday.
“This is illegal and may attract a hefty penalty in terms of the Act. In addition, the merger of the two big oil companies requires the approval of the Competition and Tariff Commission and it appears this was not sought.”
In a letter dated November 1 2011 to stakeholders, Chevron Zimbabwe said the takeover deal had been concluded.
“Following our previous communication regarding the proposed sale of Chevron Zimbabwe to Engen, this is to confirm that the sale of Chevron Zimbabwe was concluded today (November 1). Moving forward, Chevron Zimbabwe will continue to trade as usual under the ownership of Engen,” said the letter, signed by the company’s retail and commercial marketing manager, Mr Ernest Nyanga.
Chevron assured dealers there would be no change to the legal entity they were accustomed to dealing with. He added plans to rebrand the company name were under- way and dealers would be advised in due course.
Minister Kasukuwere said yesterday he was unaware of the latest development. But he insisted that the indigenisation programme should be opened up to more players instead of being dominated by “a clique”.
“I cannot comment on that one at the moment,” he said.
“But as far as I am aware, I only approved the Engen takeover deal and I am not aware that the same individuals are now involved in the Chevron deal. The law is very clear regarding such
transactions and they should just comply with the law.
“In other words, as far as I am concerned that deal is null and void and those guys should give others a chance.”
Efforts to get a comment from Mr Chingwena were unsuccessful as his mobile phone went unanswered.
Online Reporter