(news.szenergy) -- Argentinaís
move to nationalize local oil company YPF, controlled by Spainís Repsol, has
scuppered years of planning by Chinaís Sinopec Group to buy the South American
company, sources said.
Bankers said Chinaís second-largest oil company had held talks with Repsol to
buy its controlling 57-percent stake in YPF. Chinese website Caixin.com cited a
source as saying Sinopec had reached a non-binding agreement to take over YPF
for more than USD15 billion.
But plans by Argentine President Cristina Fernandez to seize control of YPF,
which have incensed Spain and sparked international criticism, have killed any
hopes that state-owned China Petrochemical Corp (Sinopec) could seal a deal,
"Itís too hairy for any Chinese major to put in that much
money, unless there is a special relationship with the Argentinian government,
which I doubt," said a mergers and acquisitions banker, who has advised Chinese
state-run oil companies on overseas acquisitions.
"This is a challenging situation for anybody given the government action. To
me it looks like political suicide to now allow a Chinese company to own YPF
soon after announcing the nationalization. I donít they can go flipflop like
Bankers said Sinopecís interest in YPF went back at least five