Pan American Energy’s Merger with Axion Energy in Argentina


Martínez de Hoz & Rueda advised on the deal

BP has agreed with Bridas Corporation (Bridas) to form a new integrated energy company by combining their interests in the oil and gas producer Pan American Energy (PAE) and the refiner and marketer Axion Energy (Axion) in a cash-free transaction. The new company, Pan American Energy Group (PAEG), will be the largest privately-owned integrated energy company operating in Argentina.

PAEG will be owned equally by BP and Bridas Corporation, itself a 50:50 joint venture of Bridas Energy Holdings of Argentina and CNOOC Limited of China. PAE is currently owned 60% by BP and 40% by Bridas, while Axion is wholly-owned by Bridas. There will be no payments for the equity exchange.

The combination of PAE and Axion under unified ownership will align the PAEG shareholders’ interests across the upstream and downstream value chains in Argentina, Uruguay and Paraguay. PAEG is expected to benefit from BP’s global upstream technical and downstream marketing experience as well as Bridas’ deep operating knowledge. The combination may also offer further integration synergies; the Axion refinery is already the primary customer for PAE’s Argentine crude oil production.

Martínez de Hoz & Rueda advised Axion Energy Argentina S.A. and Pan American Energy with a team including José Martínez de Hoz (nieto) (Picture), José Martínez de Hoz (h), Pablo Rueda, Maximiliano Batista, Tomás Dellepiane, Agustina Alfaro, Brian Burstein, Luisina Luchini, Germán Landau, Candela Zunino, Juliana Vizcaíno González, Belén Tokatlian and Victoria Casabella.

Involved fees earner: José Martínez de Hoz (n) – Martínez de Hoz & Rueda; Tomás Dellepiane – Martínez de Hoz & Rueda; Luisina Luchini – Martínez de Hoz & Rueda; José Martínez de Hoz (h) – Martínez de Hoz & Rueda; Pablo Rueda – Martínez de Hoz & Rueda; Agustina Alfaro – Martínez de Hoz & Rueda; Brian Burstein – Martínez de Hoz & Rueda; Juliana Vizcaíno González – Martínez de Hoz & Rueda; Belén Tokatlian – Martínez de Hoz & Rueda; Maria Victoria Casabella – Martínez de Hoz & Rueda; Maximiliano Batista – Martínez de Hoz & Rueda; Germán Landau – Martínez de Hoz & Rueda; Maria Candela Zunino – Martínez de Hoz & Rueda;

Law Firms: Martínez de Hoz & Rueda;

Clients: Pan American Energy LLC ; Axion Energy Argentina S.A.;

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Author: Ambrogio Visconti.