facebook
twitter
rss
account
search
search
 

Repsol backs away from LUKoil deal

Nov. 25, 2008 at 4:14 PM   |   Comments

MADRID, Nov. 25 (UPI) -- Spanish oil refiner Repsol backed out of a deal with Russian energy firm LUKoil over concerns expressed by the central government.

Spanish bank La Caixa, which holds a 12.5 percent stake in the independent oil company, filed papers Friday confirming it was in talks with LUKoil. Spanish construction group Sacyr Vallehermoso said it was looking to drop its 20 percent share in Repsol to pare losses from debt-backed financing.

Repsol, however, said in market filings Monday that it was backing out of the deal, adding there was no "external petition" influencing its decision, the Financial Times reported.

The Spanish government of Jose Luis Rodriguez Zapatero had put pressure on the Repsol move, saying it was wary of letting the company slip into foreign hands. The government also said it was worried about the effects the sale by Sacyr would have on the Spanish banking sector, as the firm struggles to support its $6.5 billion in debt.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
2014: The Year in Music [PHOTOS]

2014: The Year in Music [PHOTOS]

Most Popular
1
Laundry drying sparks 'smart skin' concept for aircraft
2
Native concerns over oil vetted in Canada
3
Military training aircraft delivered to Mexico
4
Gulf of Mexico lease draws advocacy fire
5
Only 1 in 5 insurers cover volcanic ash
Trending News
Video
x
Feedback