MOSCOW (MRC) - Mexico's national oil company Pemex will sell a 7.9% stake in Spanish oil firm Repsol, worth about 2.2 billion euros (USD3.0 billion), said Reuters.
The sale ends a long relationship between Pemex and Repsol that had run into trouble in recent years over disagreements on policies ranging from top management to the handling of Repsol's investments in Argentina.
Through this sale, Pemex will divest nearly all of its holding in Repsol, where its 9% stake has made it one of the top three shareholders.
As a result of the divestment, Pemex will lose its seat on Repsol's board. The companies had hoped to team up to explore for offshore oil in the Gulf of Mexico, so the sale represents a lost opportunity for both.
Both Repsol and Pemex declined to comment.
Still, Repsol shares could benefit in the short term, analysts said, as the sale erases uncertainty that had been holding back gains over past months, even as the company made a successful USD6.3 billion exit from Argentina.
Repsol itself is on the hunt for acquisitions to expand its exploration and production business, with a preference for oil assets that offer cash flow, banking sources said.
As MRC informed previously, Pemex and Mexichem in 2013 entered into a joint venture, which will enable greater competitiveness of the domestic petrochemical industry in the global market through the integration of a new company, which will create value to the chlorine-vinyl chain. The joint venture includes a cash investment and assets contribution up to the amount of USD518 million, of which Pemex will participate with USD228 million in assets while Mexichem will contribute with both, USD90 million in assets and USD200 million in cash in order to modernize the Pajaritos complex.
Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene, polypropylene, polystyrene.
Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
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