Pemex to decide whether to sell stake in Mexlub

Pemex, Mexico’s state oil company, has decided to re-establish its business relationship with the country’s largest lubricant company, Mexicana de Lubricantes or Mexlub. Pemex owns 49% of the Guadalajara-based company while investment holding company Impulsora Jalisciense owns 51%. According to Pemex, it will carry out an investigation into Mexlub’s financial situation and, if necessary, take appropriate legal action. Based on the investigation, Pemex will then decide whether to sell its stake which is held by the Pemex Refinación branch. Pemex has been involved in legal disputes with Mexlub over the past 10 years over an exclusivity agreement, which gave Mexlub exclusive rights to sell lubricants at Pemex-owned, as well as franchise-owned service stations. Mexico’s Federal Commission on Competition ruled in 1999 that the agreement violated the country’s anti-competitive rules and required Pemex to change the agreement. (July 6, 2011)