Another blow for BP, and its Chief Executive, Bob Dudley.
Just months after the collapse of a deal with Russia’s Rosneft, a deal worth $7 billion has also collapsed.
BP had been hoping to sell its stake in South America’s Pan American Energy, but the prospective Chinese and Argentinean buyers say the deal was canceled because of legal issues.
CNOOC and Bridas had agreed to buy BP’s 60% stake a year ago. But BP said Bridas was unable to secure Argentine anti-trust and Chinese regulatory approvals.
BP said the deal isn’t important to the firm’s cash flow, compared to a year ago when the company was raising funds to pay for the Gulf of Mexico cleanup.
But the deal’s failure might threaten a dividend increase that the company hinted could come in early 2012.
Six months ago, a joint venture with Russia’s Rosneft collapsed, following objections from TNK-BP.
BP shares fell almost 2% in morning trade.
Bottom line: BP’s $7 billion deal to sell its stake in a South American energy company collapses over legal issues, less than a year after the collapse of another deal with Russia’s Rosneft.