Mexico's Pemex Ends 25-Year Partnership With Repsol

Reuters

MADRID/MEXICO CITY, June 4 (Reuters) - Mexico's national oil company Pemex said it has sold most of its stake in Spain's Repsol SA for 2.09 billion euros ($2.9 billion) on Wednesday, and plans to unload the rest soon, ending a quarter-century partnership and freeing up cash to invest in its own energy sector.

Pemex sold 7.86 percent of Repsol to unspecified private investors at 20.10 euros each, a 3.7 percent discount to the Spanish company's closing price on Tuesday. The Mexican company later said it aimed to sell its remaining 1.4 percent stake in Repsol in August.

Pemex's exit as one of Repsol's top three shareholders ends a relationship that had become increasingly fractious in recent years due to disagreements on policies ranging from top management to the handling of Repsol investments in Argentina.

"The decision to end the Repsol investment is due to the low profitability of the shares obtained by the current administration compared with other oil firms and our differences on its corporate governance," Pemex said in a statement.

The sale comes five days before Mexican President Enrique Pena Nieto makes his first official visit to Spain and as the Latin American country is putting an end to the oil and gas production monopoly Pemex has had since 1938.

Two sources close to the matter said that the books were not covered, leaving bookrunners Citigroup Inc and Deutsche Bank AG holding an unspecified number of shares.

Separately, HSBC Holdings PLC declared a 5.37 percent stake in Repsol worth 1.4 billion euros on Tuesday, becoming the oil firm's fourth-largest shareholder behind lender CaixaBank SA, builder Sacyr SA and Singapore's Temasek Holdings Ltd.


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