Blue Water Acquisition Corp. III submits $10 billion bid for Citgo's parent company PDV Holding in court auction.

Blue Water Acquisition Corp. III has submitted a $10 billion bid for Citgo's parent company, PDV Holding, in a court-ordered auction. The bid is part of a larger effort to acquire Citgo, which is currently owned by Venezuela's state-owned oil company, PDVSA. The auction is a result of a US court ruling that PDVSA must sell Citgo to satisfy a $1.4 billion arbitration award. Blue Water's bid is the highest of several offers received for Citgo, and the company is expected to face competition from other bidders.

Blue Water Acquisition Corp. III (Nasdaq: BLUWU) has submitted a $10 billion bid to acquire PDV Holding Inc., the parent company of Citgo Petroleum Corp., in a Delaware court-supervised auction process [1]. The bid, announced on September 5, 2025, is part of a larger effort to acquire Citgo, which is currently owned by Venezuela's state-owned oil company, PDVSA. The auction is a result of a U.S. court ruling that PDVSA must sell Citgo to satisfy a $1.4 billion arbitration award [1].

Blue Water's proposal would provide cash or stock distributions to PDV Holding Inc.'s general creditors and a $3.2 billion settlement for holders of the PDVSA 2020 bonds, either in cash or in shares of the publicly listed entity that will own Citgo [1]. The assets of the auction include three major U.S. refineries, midstream infrastructure, lubricant and blending plants, and a nationwide retail distribution network of more than 4,000 branded service stations [1].

The bid is the highest of several offers received for Citgo and is expected to face competition from other bidders. Blue Water Acquisition Corp. III is a special purpose acquisition company (SPAC) formed to identify and complete a business combination with high-potential companies across diverse sectors [1].

Joseph Hernandez, Chairman & CEO of Blue Water, stated, "Our $10 billion proposal would provide creditors with both immediate recovery and the opportunity to participate in the future of Citgo as a U.S. public company. This structure is designed to deliver value for creditors, stability for employees, and ensure Citgo's assets remain under U.S. ownership and public market transparency" [1].

The auction process involves forward-looking statements, which are subject to risks and uncertainties, including the outcome of the court-supervised auction process, regulatory approvals, and market conditions [1]. Actual results may differ materially from those expressed or implied.

References:
[1] https://finance.yahoo.com/news/blue-water-acquisition-corp-iii-202400455.html