CITIC Resources Holdings Limited has reached a preliminary agreement to invest a majority stake in Caltex South China Investments Limited. The investment is a significant step towards achieving growth for the Caltex retail fuel business in South China.

The preliminary agreement is part of ChevronTexaco’s wider strategic direction to focus on enhancing and managing its brands around the world. As part of this strategy, CITIC’s investment will assist Caltex to grow its presence in the burgeoning China market, which is the fastest growing automobile market in the world, with double-digit growth expected over the next several years.

The growing demand for energy in China and the liberalization of the Chinese economic market are creating opportunities for investment in South China and other Chinese provinces through various kinds of partnerships, said Shariq Yosufzai, president of ChevronTexaco Global Marketing.

Partnering with a major business leader like CITIC will allow us to expand our retail network in the world’s fastest growing economic region while exploring growth opportunities in commercial and industrial segments.

Caltex South China Investments Limited is a joint venture between Caltex (Asia) Limited and Star Concept Holdings Limited. Caltex South China currently operates a network of more than 40 Caltex-branded service stations in South China through a number of joint venture partnerships.