Sempra Energy (SRE) announced that its Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) (IENOVA.MX) and Petróleos Mexicanos (PEMEX) will move forward to address and resolve issues raised by Mexico’s antitrust commission concerning IEnova’s purchase of PEMEX’s 50-percent equity interest in the Gasoductos de Chihuahua joint venture.
Mexico’s Comisión Federal de Competencia Económica (COFECE) rejected the transaction as proposed and specified that, based upon previous antitrust rulings on PEMEX’s indirect ownership of the TDF liquid petroleum gas (LPG) pipeline and the San Fernando pipeline, these assets must be offered by PEMEX in a competitive bidding process as a prerequisite for approval of any transaction involving these two assets.
The commission’s decision does not object to IEnova’s acquisition of the assets on a market concentration basis.
The parties are in the process of restructuring the transaction so that PEMEX can proceed with a bidding process on these two assets in accordance with the commission’s ruling. IEnova will have the right of first refusal and the right, as a partner, to approve the winning bidder.
The bidding process and restructuring of the transaction is anticipated to be completed in the first quarter 2016 and will be subject to satisfactory completion of Mexican antitrust review and may require further approvals from Mexican authorities. The terms and conditions of the revised transaction are still under negotiation.
“We look forward to working with PEMEX to address the issues raised by Mexico’s antitrust commission,” said Mark A. Snell, president of Sempra Energy. “We will proceed in a manner that is both acceptable and consistent with the commission’s guidance.”
IEnova develops, builds and operates energy infrastructure projects in Mexico. At the close of 2014 it reported investments valued at approximately US $3.5 billion, including projects in operation and construction, becoming one of the largest private energy companies in the country. IEnova is the first energy infrastructure company listed on the Mexican Stock Exchange.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2014 revenues of $11 billion. The Sempra Energy companies’ 17,000 employees serve more than 32 million consumers worldwide.