Pemex completes pipeline JV stake divestment

Thursday, September 29, 2016

Mexico's Pemex has completed the divestment of Gasoductos de Chihuahua (GDC) to its partner in the JV, IEnova.

IEnova, the Mexican unit of Sempra Energy, paid US$1.14bn for the 50% stake, becoming the whole owner of the pipeline company, which was formed in 1997.

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Pemex described the price paid as "within the range of value for comparable hydrocarbon transportation and storage companies."

Pemex's decision to offload the stake is in line with its strategy to focus on strategic assets, and the funds obtained from the divestment will be used to improve the company's financial profile and reduce its need to seek financing from debt, the state oil company said in a press release.

The transaction had been authorized by the country's federal competition commission (Cofece) this month after the two companies agreed to the sale in July. Cofece had ruled that the acquisition of the stake by IEnova would not represent a threat to competition or result in monopoly practices, but that Pemex must sell its 50% stake in GDC publicly, rather than directly to IEnova.

Gasoductos de Chihuahua is the parent company of seven other pipeline operators, including Gasoductos de Tamaulipas, Transportadora del Norte and Gasoductos del Noreste. The parent company is the operator of phase one of the Los Ramones pipeline which runs from the Texas border to Nuevo León state.

BBVA Bancomer and Credit Suisse were engaged in the transaction, Pemex said.

IEnova, in a release, said the transaction reflects its commitment to developing Mexico's energy infrastructure.