Markets

The Spanish oil company Repsol leaves the Buenos Aires stock exchange

January 9, 2019 6:25 pm CDT

The Spanish oil company Repsol announced today that it will withdraw from the Buenos Aires stock market. According to a statement from the National Securities Commission (CNV), the oil company will withdraw its shares from the list of contributing companies. Today the stock traded at $ 615, after having touched a peak of $ 820 in September, driven by the rise in the dollar at the time.

The history of Repsol was closely linked to Argentina. In 1999, the Spanish state oil company kept 15% of the shares of YPF, in what was one of the main privatizations of the Menem. In the following years, he expanded his control over YPF until he controlled 57% of the company. In 2012, former President Cristina Kirchner decided to nationalize the company and expropriated it from Repsol. After years of negotiations that included a claim before the ICSID, the Kirchner accepted to pay the Spaniards a compensation of US $ 5,000 million.

Although the shares of Repsol listed on the local stock exchange are few, in the market they claim that the instability of the Argentine economy was contagious to the company’s price, so they opted to leave the Merval. After the termination of YPF, Repsol no longer had assets in the country.

In the statement released today CNV details that through resolution 19963, dated December 28, Repsol was authorized to make “the withdrawal of the public offering and quotation of the company’s shares in Argentina” .

The holders of Repsol shares in the local stock exchange who decide to keep the paper may administer them through the Caja de Valores, without having to transfer them to a foreign depositor. Those who want to sell can do so through BBVA. During the next three months, Repsol will be responsible for the expenses derived from this operation.