Mexico’s Alfa Rallies Amid Pacific Rubiales Takeover SpeculationMichelle F. Davis and Ben Bain
Alfa SAB rose to a one-week high on speculation that the Mexican petrochemical and auto parts company is moving closer to a tie-up with Colombian oil producer Pacific Rubiales Energy Corp.
Shares of the San Pedro Garza Garcia, Mexico-based company added 2.7 percent to 45.98 pesos at 2:30 p.m. in Mexico City, the highest on a closing basis since Sept. 19. The advance was the biggest on Mexico’s benchmark IPC index, which was little changed. Pacific Rubiales added 2.7 percent in Bogota trading.
Pacific Rubiales Chief Executive Officer Ronald Pantin, in an interview last week, didn’t rule out the possibility that Alfa could seek to buy the company as Mexico opens its energy industry to more private investment. Alfa, which last month boosted its stake in Bogota-based Pacific Rubiales to 17 percent, would benefit from gaining its oil expertise, according to CI Casa de Bolsa SA.
“The CEO’s comments are positive for Alfa,” Aldo Miranda, a trader at Mexico City-based CI Casa de Bolsa, said in an e-mailed response to questions. “Alfa, in acquiring Pacific Rubiales, would become one of the prime beneficiaries of openings in Mexico when it comes to the new energy sector.”
Alfa’s press office declined to comment on the possible deal.