Skip to comments.Argentina to Seek Takeover of YPF (Nationalizes Spanish Energy Company)
Posted on 04/16/2012 11:21:03 AM PDT by mojito
President Cristina Kirchner, in a move that marks a watershed in expanding the state's grip on the economy, said she will send a bill to Congress to nationalize Argentina's largest oil-and-gas company, YPF SA.
Under the proposal, which declares the petroleum industry of "national public interest," Argentina's federal and provincial governments would take 51% of the company, now majority owned by Repsol YPF of Spain. The move is sure to be approved in Argentina's Congress, where the leftist Mrs. Kirchner's governing Peronist part holds a majority.
The nationalization marks the culmination of a months-long battle between YPF and the Kirchner government. The administration blames YPF for low production that has forced Argentina to spend heavily for imported energy.
YPF didn't immediately respond to a request for comment. A spokeswoman for Spain's foreign ministry said the government had no immediate comment.
The nationalization is certain to spark an intense legal fight between the government and Repsol, while also straining the Kirchner government's relationship with Spain, a big investor and trading partner. In addition, the action is likely to further damage Argentina's reputation among investors while adding tension to Argentina's relations with the European Union.
(Excerpt) Read more at online.wsj.com ...
Welcome to the People’s Republic of Argentina. What’s next, nationalizing d’Anconia Copper?
YPF should do a Wyatt’s torch.
Socialists: They are never satisfied.
It’s much easier to covet than produce.
The Argentines are sure feeling frisky these days. Picking a fight with Britain over the Falklands, now with Spain. Having a go at the “Yankee Imperialists” seem the next logical step.
And plots a similar move when the time is right.
And moves to nationalize the US private pension system in imitation of his Argentinian Comrade.
You mean the People’s *State* of Argentina . . . .
All the companies in Atlas Shrugged were basically owned by one man or one woman who could chose to destroy what they created. I am sure that YPF is publically traded or owned in part by the Spanish Government. With that being the case they will be unable to do the right thing and scorch the earth as they are driven out.
Argentina is going down the same road as Zimbabwe and Veenzuela.
Hey, a guy can dream can’t he?
When I originally posted this article it wasn’t behind the pay wall (I don’t have a subscription).
It also looks like it’s been edited since first posted.
I wasn’t criticizing your post, I was just noting a tip for finding full text behind paywalls for newbies like you. ;-)
What with the recent Argentinian renewing of its claim to Majorca, relations with Spain are probably tense right now.