Sonatrach bids 5.7 billion for 30% share in Spanish firm Cepsa

25/09/2007

[cepsa.com]

Algeria's state oil and gas firm Sonatrach has reportedly offered 5.7 billion euros for a 30% stake in the Spanish oil company Cepsa, currently held by Banco Santander. According to a report published in the Spanish newspaper El Economista on Monday (September 24th), Sonatrach's bid is the highest yet and the deal may be finalised provided it does not face any regulatory hurdles. Sonatrach hopes the acquisition will secure it entry into the Spanish market and also guarantee it full control over the Medgaz pipeline project that will carry Algerian gas to Spain and rest of the EU. Cepsa owns 20% of Medgaz, while Sonatrach holds another 36%.