US businessmen try to block Pemex’s purchase of Deer Park

A pair of New York businessmen filed a lawsuit in a court of law. U.S to prevent Pemex I bought Deer park, claiming that the sale would raise gasoline prices in the United States.

According to Forbes, Royal Dutch Shell agreed in May to sell its majority stake in the 302,800 barrels per day (bpd) Texas refinery outside of Houston to Pemex, its longtime partner at the plant, for about 596 million dollars.

The lawsuit, filed last week in a US district court in Houston, alleges that the sale would lead to “substantially less competition” in gasoline and “significantly increase” the plaintiffs’ energy costs.

Pemex with obstacles to buy Deer Park

Deer Park US businessmen try to block Pemex’s purchase of Deer Park

They ask the court to permanently block the sale or force Pemex to dispose of its holdings. Pemex did not respond to requests for comment. Spokesmen for Shell, the CFIUS and the Treasury Department declined to comment.

The deal has been delayed by an ongoing review by the Committee on Foreign Investment in the United States (CFIUS), a national security group that can block or place restrictions on foreign purchases by US companies.

Mexican President Andrés Manuel López Obrador has said that the agreement would bring Mexico closer to fuel self-sufficiency. The president has promised to substitute imports by producing more in the country.

López Obrador seeks to strengthen Pemex

US businessmen try to block Pemex’s purchase of Deer Park

This year, Mexico has imported around 60% of its fuel needs. The president has complained that the 28-year joint venture with Shell has not been good for the country, as dividends have not been repatriated.

Aaron Hagele and Andrew Sarcinella, owners of a self-service laundry in Mt. Vernon, New York, who filed the lawsuit, said their business would suffer a “incalculable but obvious” effect if more production is exported from Deer Park.

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