China’s Sinopec is eyeing a €2.7bn stake in Spain’s Repsol as Sacyr Vallehermoso, the indebted Spanish builder, races to offload half of its shares in the oil company to pay back loans in order to avoid a possible collapse.

The building group has identified two possible buyers for a quick sale of up to half its holding worth €2.7bn at current market prices, according to people familiar with the talks.

Sinopec, the state-controlled oil group that last year struck a $7.1bn deal to buy 40 per cent of Repsol’s Brazilian operations, has been approached by Sacyr’s advisers to purchase up to 10 per cent of the Spanish oil group’s shares.

This has been done with the co-operation of the Repsol management, which would be prepared to grant the Chinese group a seat on its board.

Sacyr, which is being advised by Lazard and Mediobanca, remains confident that an unnamed Latin American oil group is also interested and could bid before Wednesday.

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