The worlds second largest independent oil trader is securing storage assets from marine fuel supplier and terminal operator Chemoil Energy following the purchase of a majority stake.
Switzerland-headquartered trader Glencores purchase amounts to a 51% stake in the Singapore-listed company.
Chemoil's stock has more than doubled since the start of the year on expectations of a possible takeover deal and amid the recovery in oil prices. Glencore values Chemoil at just under half a billion US dollars.
Glencores move gives it a secure footing in fuel storage terminal assets located in Asia and the Middle East.
Oil consultants agree that the valuable part of Chemoil is the terminals, performing better than the trading business.
Chemoil made a profit of $34.8 million (23.9 million) in the nine months to September, a 76% drop on the same period last year, though it made a loss in the third quarter, hurt by weak fuel oil margins.
Chemoil owns the 448,000 m3 Helios oil storage terminal in Singapore, the world's top ship refuelling port, and a stake in a joint venture 100,000 m3 terminal in the world's third biggest ship refuelling port Fujairah.