Shell’s $1B SA Sale Faces Legal Fight Over BEE Partner Switch

A high-stakes legal battle is brewing over the sale of Shell’s downstream business in South Africa, valued at $1 billion (R18 billion), according to Sunday Times.

The dispute centers on Swiss energy giant Gunvor’s last-minute decision to replace Afrifund Investments, led by businessman Sipho Maseko, with Matasis Investment Holdings—a Johannesburg-based firm headed by former Northern Cape premier Manne Dipico.

Maseko and Afrifund are reportedly considering legal action, alleging they were sidelined in favor of a politically connected entity. Shell announced its exit from South Africa’s downstream sector—including 600 service stations—last year, aiming to shift focus to global upstream operations.

Gunvor, led by Swedish billionaire Torbjörn Törnqvist, is the front-runner to acquire Shell’s assets. The firm boasts a diverse portfolio, including refineries, power generation, and retail fuel distribution, with $136 billion in 2024 revenue.

Other interested parties included Saudi Aramco, Trafigura, and PetroSA, but Rothschild & Co reportedly recommended Gunvor to Shell’s board.

Allegations of Bad Faith
Sources revealed to the Sunday Times that Afrifund was shocked when Gunvor terminated their partnership just before the deal announcement. An insider accused Gunvor of exploiting Afrifund to secure shortlisting, only to abandon them without clear justification.

“Gunvor acted in bad faith,” the source claimed. “They used Afrifund’s BEE credentials, then switched to a politically linked partner.”

Gunvor allegedly cited compliance issues with an Afrifund member but provided no details, leaving the consortium unable to challenge the decision legally.

As tensions escalate, the deal’s fate hangs in the balance, with potential legal action threatening to delay Shell’s exit from South Africa’s fuel market.