Bloomberg News

Pemex Allowed to Keep Increased Repsol Stake, Regulator Says

September 29, 2011

(Updates with shareholdings in third paragraph.)

Sept. 29 (Bloomberg) -- Spain’s energy regulator said it won’t investigate Petroleos Mexicanos’ increased stake in Repsol YPF SA, denying a request from the Spanish company’s management.

The watchdog, known as CNE, said its decision to allow Repsol to keep the stake took into account criteria that had been followed in similar cases, according to an e-mailed statement today.

The state-owned Mexican oil company, known as Pemex, increased its holding to almost 10 percent this month from 5 percent after agreeing to an alliance with Sacyr Vallehermoso SA, Repsol’s biggest shareholder with 20 percent.

The decision advances Sacyr and Pemex’s bid to increase their influence over Repsol and install a chief executive officer alongside Chairman Antonio Brufau. It will also strengthen Sacyr’s negotiating position as it works to refinance a 4.9 billion-euro credit ($6.7 billion) secured against its Repsol shares that comes due in December.

--Editors: Alex Devine, Stephen Cunningham

To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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