International Petroleum Investment Company (IPIC) owned by Abu Dhabi, offered Wednesday to buy the remaining half of Spanish oil refining and distribution group (Cepsa) from French oil major (Total) for 3.7 billion Euros.
The Spanish media said today that (IPIC), which currently held 47 percent of the shares in the Spanish (Cepsa), made an offer to buy the French oil company’s 48.8 percent stake and bid for the remaining (Cepsa) stock at 28 Euros a share in cash.
The French company said in a statement that the deal would take place before Oct. 31 explaining that its decision to sell its shares of stock in (Cepsa) is “irrevocable”.
It also explained that the divestment will advance its goal of reducing its exposure to the European refining business, and announced a memorandum of understanding with IPIC to develop projects of oil exploration and production.
The transaction must be approved by the European Commission, given its European dimension, and by the authorities of the United States and Canada. There will be no need to the approval of the National Energy Commission (CNE) or any other authority related to energy.
Cepsa, Spain’s number two oil group refines about 500,000 barrels of oil a day and has 1,750 service stations in Spain and Portugal. It also has exploration and production interests in Latin America and North Africa and investments in petrochemicals and electricity generation and distribution, it is considered to be one of the 35 largest companies in the world in the field of refining oil and one of the most important companies in Europe in terms of sales volume.