MEXICO CITY�Mexico�s Energy Regulatory Commission (CRE) has approved the sale of Texas-based TXU Corp.�s stake in Mexico City natural gas distribution company Metrogas to Repsol-YPF SA unit Gas Natural Mexico and Hidroelectrica del Cantabrico. TXU agreed in March to sell its stake in Metrogas to the two Spanish firms for $68 million, but the transfer required the approval of the CRE.
Metrogas is now owned 42.6% by Gas Natural Mexico, 42.6% by Hidroelectrica del Cantabrico, and 14.7% by Mexico�s Grupo Diavaz and Controladora Comercial e Industrial.
Separately, Gas Natural Mexico said it has withdrawn its bid to distribute natural gas in Mexico�s second largest city, Guadalajara, after Mexico�s competition watchdog agency, the Federal Competition Commission, raised concerns.
In addition to the Mexico City holdings, Gas Natural Mexico has permits to distribute natural gas in Monterrey, Toluca, Bajio, Bajio Norte, Saltillo, and Nuevo Laredo, for a total investment commitment of around $400 million.
The two remaining bidders for the Guadalajara zone are Gaz de France and Belgium's Tractebel. CRE is due to announce the winner of that zone by June 21.
