Mexico in Brief
From Mexico in Brief Newsletter
GRUPO FINANCIERO BANORTE TO MERGE WITH GRUPO FINANCIERO INTERACCIONES.
Three years after Carlos Hank Gonzalez stepped-down as chief executive of Interacciones to join the board of Banorte, Mexico-based banking and financial services holding company, Banorte, announced that it had signed an agreement to acquire closely linked peer Interacciones for approximately U.S.$719 million in cash and approximately U.S.$109 million in shares.
VOLARIS TO BUY AIRCRAFT FROM AIRBUS.
Volaris, Mexico-based airline which current fleet of aircraft totals 70, will buy 80 new aircraft, to be delivered from 2022 to 2026, from Europe-based Airbus in a transaction with a value of approximately U.S.$ 9.3 billion. The new aircraft will support Volaris’ plans to grow in the United States, Mexican and Central American markets.
GRUPO MODELO TO BUILD A NEW PLANT IN HIDALGO, MEXICO.
Grupo Modelo, Mexico-based brewery with seven plants in Mexico, will invest approximately U.S.$754 million in the construction of a brewing and bottling plant in the Mexican State of Hidalgo, scheduled to begin by the end of 2017, with operations starting in early 2019.
MAQUILA GROWS 17% IN THE MEXICAN STATE OF NUEVO LEON.
Contract manufacturer or maquiladoras within the Mexican State of Nuevo Leon grew 17 percent in the first eight months of 2017, with sales reaching an aggregate of approximately U.S.$24 billion – a 17% growth from the same period of 2016, according to the National Statistics and Geography Institute of Mexico (INEGI) and the Bank of Mexico.
ENEL WINS WIND PROJECTS IN THIRD MEXICAN AUCTION.
Italy-based multinational manufacturer and distributor of electricity and gas, Enel Group, was awarded with 593 MW of wind projects in Mexico’s third auction for long-term renewable energy in the Third Long Term Electric Auction of the National Energy Control Center (CENACE). Enel won a world-record low U.S.$17.7/MWh for an onshore wind project in this auction, as part of a total of 593 MW worth of wind energy contracts.
PEMEX MAKES BIGGEST ONSHORE OIL FIND IN 15 YEARS.
Pemex, Mexico’s government-owned oil company, made its largest onshore oil discovery in 15 years by drilling its onshore “Ixachi” in the Mexican State of Veracruz, which overall field may hold some 350 million barrels of proven, probable and possible reserves.
REGISTRATION BEGINS FOR ROUND 2.4.
Twenty-five companies signed-up before the National Hydrocarbons Commission of Mexico for the 4th invitation of the 2nd Round Bidding process and the PEMEX farmout for the ”Maximino-Nobilis” deep-water block, which bid will occur on January 31, 2018. The bidding will include 30 deepwater blocks for exploration.
MEXICAN POWER AUCTIONS SECURE RECORD-BREAKING LOWEST PRICES FOR CLEAN ENERGY.
The National Center of Energy Control, or CENACE, awarded the contracts of Mexico’s third long-term power auction, setting a record for the lowest cost on the planet for solar energy, with offers of U.S.$17.70 per MWh. In total, 16 projects were awarded 15-year PPA’s to supply energy to state-owned Comisión Federal de Electricidad and two private buyers: Iberdrola and Cemex. Among the biggest winners of the auction, Italy-based Enel with the record-breaking solar projects and a 244 MW wind farm in the state of Nuevo Leon; and French-based Engie,with three solar projects and a wind project with also a global low price. The awarded projects will add approximately 7.4 GW of new clean energy to the country’s existing capacity and are expected to attract almost U.S.$2.4 billion in investment.