21.11.08 - 11:42 -
The Lukoil building in Moscow. / EFE / Sergei Ilnitsky
Prime Minister José Luís Rodríguez Zapatero said on Thursday that while the Spanish identity of oil company Repsol-YPF is a good thing, Madrid must "be respectful" of the right of companies such as Russian giant Lukoil to purchase shares in the Spain-based firm.
He emphasized that both Repsol and Lukoil are private enterprises and pointed out that a U.S. oil company is the biggest single shareholder in the Russian firm.
News that Lukoil is interested in acquiring up to 30 percent of Repsol set off a cascade of political reaction in Spain, and every party except the governing Socialists expressed strong objections to the possible deal.
Indeed, before Zapatero's comments, Industry Minister Miguel Sebastián said early on Thursday that the government would do everything possible to ensure Repsol remains "independent and Spanish."
But within hours, the premier was telling Spaniards that acquisitions were part of the game in a market economy.
"The government understands it is good that Repsol has a Spanish flag and the government has to be respectful of the company's interests and of the possible negotiations for the incorporation of other partners," he said.
"The majority shareholder in Lukoil is the world's second(-biggest) oil company, which is North American," Zapatero said, referring to ConocoPhilips. "That means 20 percent of Lukoil shares are U.S."
"We will keep watch so that things - if there are processes of this nature, the incorporation of new shareholders - are done well, and they produce a result favorable for the strategic interests of Spain and for a company such as Repsol," the prime minister said.
Market sources told Efe that holding company Criteria may sell part of its 12.5 percent in Repsol to Lukoil, which is also mulling an offer for the 20 percent of Repsol held by ailing Spanish builder Sacyr-Vallehermoso.
Lukoil is said to want to acquire 30 percent of Repsol. Going beyond that threshhold would require the Russian firm to make an offer for all outstanding shares in the target company.
The Spanish government's golden share in formerly state-owned Repsol expired in February 2006.
The apparent ambition of Lukoil to become Repsol's majority shareholder was vehemently rejected on Thursday by Spain's main opposition, the right-wing Popular Party, as well as by smaller formations across the political spectrum.
Critics say that Lukoil's control of Repsol could disrupt a strategic sector of the Spanish economy.
