Alfa SAB and Harbour Energy Ltd. dropped their plans to buy Pacific Rubiales Energy Corp. after the driller’s largest shareholder resisted their $1.7 billion takeover offer.
Pacific Rubiales said Wednesday it agreed to the companies’ request to abandon the bid and would have “no further material obligations” to its former suitors. Efforts to pursue “Mexico energy opportunities” with Alfa as a partner will continue, Bogota-based Pacific Rubiales said in a statement.
For Mexico’s Alfa, a manufacturer and lunchmeat producer, the pullout is a setback in its quest to become an oil company a year after announcing its first Pacific Rubiales investment. Alfa’s exit is a win for O’Hara Administration Co., the Venezuelan-led shareholder group that controls almost 20 percent of Pacific Rubiales and attacked the offer of C$6.50 per share as too low.
Alfa was backed by Harbour, an energy investment firm.