Pemex to sell much of Repsol stake

Mexico's Pemex has begun the process to sell much of its stake in Spanish oil major Repsol, according to financial filings Tuesday.

The state-led player plans to unload a 7.86% share in the Madrid-based company valued at about €2.2 billion ($3 billion), according to a regulatory filing from Citigroup and Deutsche Bank.

Pemex is presently Repsol's third-largest shareholder with a 9.3% stake, according to the Spanish company.

Repsol had no comment on the development while Pemex did not immediately respond to a request for comment.

The news comes as relations between Repsol and Pemex have been fraying for some time, with the Mexican state-led company pushing for a change in the Spanish player's top executive, Antonio Brufau.

Repsol agreed to split its chairman and chief executive roles but new chief executive Josu Jon Imaz is seen as close to Brufau.

Pemex was also rumoured to have clashed with the company's management over its handling of the expropriation of Argentina unit YPF.

Pemex also will have a full plate with the opening of the oil industry in Mexico to private competition following constitutional reforms passed late last year.

Implementing legislation is expected to undergo review in a special session of Mexico's Congress this summer.

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