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M & A Advantages Geographical Difersification YPF would deepen Repsol’s business base in Argentina and give it a material presence in other Latin America.

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Presentation on theme: "M & A Advantages Geographical Difersification YPF would deepen Repsol’s business base in Argentina and give it a material presence in other Latin America."— Presentation transcript:

1 M & A Advantages Geographical Difersification YPF would deepen Repsol’s business base in Argentina and give it a material presence in other Latin America Country Business Difersification Repsol’s activities were concentrated in the “down-stream” segment of the oil industry : refining and marketing. YPF had a subtantial presence in explorattion and production also activity in natural gas. Acquisition of Reserves The transaction would convey YPF’s substantial reserves at relatively low average price Competitive Preemption Acquiring this dominant competitor in Latin America would deny other oil companies access to this market. YPF had strong brand in Latin America. Critical Mass The transaction would elevate Repsol in the league tables of intergated oil companies

2 Repsol Strategic Objectives Grow Upstream YPF would strengthen Repsol’s upstream business : oil and gas reserves would grow by more than four times. Expand Internationally YPF would triples Repsol’s presence in Latin America with 50 percent of the new group’s total assets Diversify into gas/power generation YPF would raise gas production eightfold Retain Domestic Market Share YPF’s acquisition would complement Repsol’s dominance in the Spanish market.

3 Other Advantages Synergies Financial Effects of the Combination Form of Payment

4 Financing a Posible Cash Bid Financing with Debt Financing with an Issue of Common Equity Cash offer with a mix of Debt and Equity


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