CVR Energy, a refining company owned by Carl Icahn, is one of the contenders seeking to acquire shares in PDV Holding, the parent company of Citgo, according to Reuters sources. The sale, initiated by a Delaware court in October 2023 to settle claims against Venezuela’s oil assets and Citgo’s debts, has progressed through multiple bidding rounds.
CVR Energy, with Carl Icahn holding a 66% stake, operates refineries in Kansas and Oklahoma. It has partnered with Wells Fargo to secure funds for its bid, aiming to acquire a significant position in Citgo, the seventh-largest U.S. refiner with a daily capacity exceeding 800,000 barrels.
Citgo’s assets include refineries in Texas, Louisiana, and Illinois, as well as pipelines and a network supplying gasoline to 4,200 U.S. outlets. The bidding process has attracted interest from various parties, including activist fund Elliott Investment Management, amidst efforts by creditors and claimants in Delaware courts to recover approximately $24 billion.
The initial bidding round concluded earlier this year with non-binding offers, while the deadline for binding bids in the second round was July 1. Despite a court-approved claim value of $24 billion, the highest bid in the first round reportedly reached only $7.3 billion. Unless bids in the second round approach $10 billion, further rounds may be considered.
The deadline for submissions in the current round is July 15, with the winning bidder expected to be announced by the end of the month. According to officials overseeing the auction, competitive bids have been submitted, indicating a robust interest in acquiring Citgo amid ongoing legal proceedings.