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LatAmOil MEXICO LatAmOil

Pemex is slated to gain control of 100% of the plant’s equity (Photo: Shell)

Pemex may complete acquisition

of Deer Park refinery next week

MEXICO’S national oil company (NOC) Andrew Sarcinella, the owners of a coin-oper-
Pemex is slated to complete its acquisition of the ated laundromat in Mount Vernon, New York
Deer Park refinery in Texas from an affiliate of – had filed suit in the US District Court for the
Shell (UK) within a week, according to Reuters. Southern District of Texas in a bid to prevent the
Three sources with knowledge of the matter sale, arguing that the transaction would cause
told Reuters earlier this week that Pemex would indirect harm to their business. In their initial
take control of Shell’s 50.01% stake in the plant petition, filed in December, they said Pemex’s
on January 20. Since the Mexican company plan to send gasoline, diesel and other petro-
already has 49.99% of the facility, the transaction leum products turned out by the Deer Park
will bring its holdings up to 100%. refinery to Mexico would cause US fuel prices to
According to one of Reuters’ sources, Pemex’s rise, thereby inflicting “incalculable but evident”
CEO Octavio Romero Oropeza is expected to damage on the people who use the laundromat.
travel to Texas next week to finalise the deal, Judge Lee Rosenthal responded to their filing
which has been valued at nearly $600mn. by denying their requests for expedited discov-
Meanwhile, another source said that the NOC ery and a temporary restraining order.
had resolved all outstanding questions related to Shell responded to the judge’s ruling by say-
the plant’s workforce. The parties have struck an ing in a statement it was pleased that the court
agreement that will allow current employees to had recognised that no legal impediments to the
continue working at the refinery, even though planned sale to Pemex existed. As of press time,
they will no longer be employed by Shell, he said. though, neither Pemex nor the plaintiffs had
A third source, for his part, told the news commented publicly on the matter. According
agency that Pemex and Shell were still working to a court docket cited by Argus Media, Hagele
to wrap up a few final matters and had acceler- and Sarcinella have said they intend to pursue
ated the pace of discussions in the hope of com- the matter further in court.
pleting the deal by February 1. Pemex struck a deal with Shell on the stake
As of press time, Pemex had not commented sale last year. It had hoped to conclude the trans-
on the matter. action by the end of last November but had to
delay it while waiting for the Committee on For-
Legal developments eign Investment in the United States (CFIUS).
The Reuters report came shortly after a US fed- The committee appears to have green-lighted
eral court rejected a request to block Pemex the sale on or around December 21, and the
from acquiring Shell’s stake in the Deer Park parties have now completed about 90% of the
refinery. work needed to wrap up the deal, Argus Media
Two US businessmen – Aaron Hagele and reported last week. ™

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