Argentina’s Nationalization of YPF Kills Deal with China (REPYY, SNP)
The coming nationalization of the YPF portion of Repsol YPF SA (OTC: REPYY.PK) by the Argentine government has killed a deal that the Spanish company had been reportedly negotiating with China Petroleum and Chemical Co. (NYSE: SNP), known as Sinopec,…
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According to reports in the Financial Times, Repsol wanted more than $10 billion for its stake in YPF and had hoped to get a deal agreed before going to Argentina’s President Cristina Kirchner. But she beat Repsol and Sinopec to the punch with yesterday’s announcement that the government would re-nationalize YPF.
Sinopec, of course, now has no intention of buying Repsol’s stake in YPF and the government of Argentina appears to have no intention of paying Repsol $10 billion or more for the Spanish company’s stake. Repsol shareholders can only lament the one that got away.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
