Blue Water Advances in CITGO Bidding Process

Rhea-AI Summary

Blue Water Venture Partners (NASDAQ:BLUWU) has advanced in the CITGO bidding process after receiving court approval to access the confidential data room. The company has submitted a $10 billion bid to acquire CITGO, surpassing existing offers.

The proposal includes plans to transform CITGO into a publicly traded U.S. company, offering bondholders and creditors the opportunity to convert their holdings into equity shares. Blue Water's strategy emphasizes maintaining U.S. energy security, preventing control by private hedge funds or foreign entities, and ensuring uninterrupted energy supply to U.S. markets, particularly in the Midwest region.

Positive

• None.

Negative

• Deal completion subject to regulatory and shareholder approval
• Complex restructuring process involving multiple stakeholders

Insights

Mergers & Acquisitions Expert

Blue Water's $10B CITGO bid advances to due diligence stage, potentially creating significant shareholder value if successful.

Blue Water has cleared a critical first hurdle in the CITGO acquisition process by securing court approval to access the confidential data room. This represents the due diligence phase of what appears to be a competitive bidding process for CITGO, a major U.S. energy asset. The $10 billion bid positions Blue Water as a serious contender, reportedly exceeding other offers currently under consideration.

What makes this bid structurally innovative is the proposed conversion of creditor claims into equity in a publicly traded entity. This approach could potentially create a win-win scenario by offering creditors long-term upside through equity ownership rather than a one-time cash settlement. For BLUWU shareholders, successful acquisition of CITGO would represent a transformative transaction that could dramatically increase the company's market capitalization and operational footprint.

However, this is still early in what will likely be a complex and lengthy acquisition process. Access to the data room simply means Blue Water can now conduct detailed due diligence - it doesn't guarantee the bid will be accepted. The regulatory scrutiny will be intense given CITGO's strategic importance to U.S. energy infrastructure. Additionally, the transaction structure involving creditor equity conversion adds layers of complexity that could extend the timeline for completion.

The emphasis on American ownership suggests strategic positioning to address potential national security concerns that might arise during regulatory review. This approach may help differentiate Blue Water's bid from competitors, particularly those with foreign backing, but also signals awareness of the complex geopolitical factors surrounding CITGO's ownership.

NEW YORK, Sept. 15, 2025 /PRNewswire/ -- Blue Water Venture Partners, LLC ("Blue Water"), an entity affiliated with Joeseph Hernandez, the Chairman and Chief Executive Officer of Blue Water Acquisition Corp. III (Nasdaq: "BLUWU"), announced today that it has received court approval to enter into a non-disclosure agreement with the Special Master, granting access to the confidential data room established for the CITGO sale.

Blue Water continues to assert that its proposal represents the most compelling and beneficial path forward for all stakeholders. Blue Water's $10 billion bid surpasses existing offers and is purpose-built to safeguard U.S. energy security while ensuring fair and equitable treatment of creditors.

Key highlights of the Blue Water proposal include: 

• Superior Valuation: A $10 billion offer that exceeds current bids under consideration. 
• American Public Ownership: A commitment to transform CITGO into a publicly traded U.S. company, promoting transparency and broad market participation. 
• Creditor Equity Conversion: Bondholders and creditors would gain the opportunity to own shares in a public company, subject to regulatory and shareholder approval, preserving long-term value.
• Protecting U.S. Energy Security: The proposal intends to prevent private hedge funds or foreign companies from controlling critical American energy assets. 
• Uninterrupted Supply to U.S. Markets: Ensures continued and stable energy delivery to U.S. consumers, with a focus on safeguarding the Midwest region.

"We believe our bid not only delivers the strongest value to creditors and bondholders, but also ensures CITGO remains a vital, majority American-owned energy provider that supports U.S. markets and consumers," said Joseph Hernandez, Chairman of Blue Water Venture Partners. "Our vision is to return CITGO to the public markets in a way that protects energy independence, strengthens creditor recovery, and prevents hedge fund or foreign control over critical U.S. energy assets."

Blue Water remains committed to active participation in the sale process and to working collaboratively with all stakeholders to achieve the best possible outcome for creditors, consumers, and the broader U.S. energy market.

About Blue Water Acquisition Corp. III

Blue Water Acquisition Corp. III (Nasdaq: BLUWU) is a special purpose acquisition company (SPAC) formed to identify and complete a business combination with high-potential companies across diverse sectors.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties, including the outcome of the court-supervised auction process, regulatory approvals, and market conditions. Actual results may differ materially from those expressed or implied. Blue Water Acquisition Corp. III disclaims any obligation to update forward-looking statements except as required by law.  These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, including without limitation, Blue Water Acquisition Corp. III's ability to enter into definitive agreements and complete the transaction. These risks, uncertainties and other factors are expected to be further described in a proxy statement/registration statement to be filed with the Securities and Exchange Commission (the "SEC") relating to any business combination transaction.  

Participants in the Solicitation

Blue Water Acquisition Corp. III and its respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in a solicitation of its shareholders in connection with a proposed business combination. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Blue Water Acquisition Corp. III directors and officers in its SEC filings. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Blue Water Acquisition Corp. III shareholders in connection with the proposed business combination will be set forth in the proxy statement/prospectus for the proposed business combination when available. 

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

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SOURCE Blue Water Acquisition Corp iii

FAQ

What is Blue Water's bid amount for CITGO?

Blue Water has submitted a $10 billion bid for CITGO, which exceeds current offers under consideration.

What are the key components of Blue Water's (BLUWU) CITGO acquisition proposal?

The proposal includes transforming CITGO into a public U.S. company, allowing creditors to convert holdings to equity shares, maintaining U.S. energy security, and ensuring uninterrupted energy supply to U.S. markets.

How will Blue Water's CITGO acquisition affect creditors and bondholders?

Creditors and bondholders would have the opportunity to convert their holdings into shares of the publicly traded company, subject to regulatory and shareholder approval.

What is Blue Water's (BLUWU) strategy for CITGO's future operations?

Blue Water plans to maintain CITGO as a majority American-owned energy provider, prevent foreign or hedge fund control, and ensure stable energy delivery to U.S. consumers, particularly in the Midwest region.

What stage is Blue Water in the CITGO acquisition process?

Blue Water has received court approval to enter into a non-disclosure agreement with the Special Master, gaining access to CITGO's confidential data room for the sale process.