Presentation on theme: "M & A Advantages Geographical Difersification"— 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 CountryBusiness DifersificationRepsol’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 ReservesThe transaction would convey YPF’s substantial reserves at relatively low average priceCompetitive PreemptionAcquiring this dominant competitor in Latin America would deny other oil companies access to this market. YPF had strong brand in Latin America.Critical MassThe transaction would elevate Repsol in the league tables of intergated oil companies
2 Repsol Strategic Objectives Grow UpstreamYPF would strengthen Repsol’s upstream business : oil and gas reserves would grow by more than four times.Expand InternationallyYPF would triples Repsol’s presence in Latin America with 50 percent of the new group’s total assetsDiversify into gas/power generationYPF would raise gas production eightfoldRetain Domestic Market ShareYPF’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 DebtFinancing with an Issue of Common EquityCash offer with a mix of Debt and Equity