Bankers said China’s 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 $15 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, they said.
“It’s 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.
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