Sacyr: ‘No Repsol stake sale’

Spanish construction company Sacyr-Vallehermoso has no intention of following Pemex in letting go of its sizeable stake in compatriot oil giant Repsol, according to a report.

Sacyr chief executive Manuel Manrique made the pledge at the company’s annual shareholder meeting on Thursday, Reuters reported.

The Madrid-based player has almost 10% of Repsol and had previously sided with Mexican state oil company Pemex in a spat with the Spanish explorer.

Pemex earlier this month elected to sell a 7.86% stake in Repsol due to profitability concerns and disagreements over corporate governance.  The company held a 9.3% stake in total.

Pemex, which bought into the Spanish major in 2011, said "mutual benefits" from an "industrial alliance" were not realised.

"The divestment of the share position in Repsol will allow a better allocation of financial resources in projects and investments with better expectations of profitability and generation of economic value for Mexico," Pemex said in a statement.

Pemex was looking to book a gain of $900 million after the divestment.

Reports have also indicated that Pemex aims to sell off the remainder of its share position - what was the third-largest in Repsol - by the end of the summer.

Pemex had initially hoped to leverage its stake in Repsol for technical knowledge, but relations began to sour as early as 2012 when Pemex sided with fellow Repsol shareholder Sacyr-Vallehermoso in a management spat.

Pemex and Repsol also clashed over the Spanish company's handling of the expropriation of its majority stake in Argentina unit YPF, which turned into a grueling two-year negotiation with the South American nation's government.

Newsletter signup

User

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login