Mexico in Brief

Mexico in Brief, our monthly newsletter, is available in this section. Our Mexico in Brief summarizes the most relevant business news in Mexico, and also lists the main Mexican economic indicators. Our file is organized by issue number and issue date. Please consult it at your convenience and send us any comments through the link appearing below, or emailing us at mexico.in.brief@jatabogados.com.

From Mexico in Brief Newsletter

  • MEXICO’S HIGHWAY OPERATOR SOLD BY GOLDMAN SACHS.

    Goldman Sachs Group Inc. has recently agreed to sell a 70% stake in one of Mexico’s main highway operator, Red de Carreteras de Occidente, or RCO, for approximately U.S.$1.66 billion. The buyers will be Spanish company Abertis Infraestructuras SA and Singaporean fund GIC Pte. Ltd., and the transaction is expected to close within the first semester of 2020. The remaining 30% stake of RCO will be held by investors and pension fund managing companies.

  • ASTRAZENECA’S GLOBAL TECHNOLOGY CENTER TO EXPAND.

    British pharmaceutical AstraZeneca will invest around U.S.$107 million within the next three years to boost the development of its Global Technology Center in the Mexican State of Jalisco, which has increased their demand of services. The center, open since 2016, will use the investment to increase in size, personnel and infrastructure. AstraZeneca has another Global Technology Center in India, which opened in 2014.

  • MAJOR HOTEL INVESTMENTS ANNOUNCED.

    A group of private investors announced the hotel project Grand Island Cancun, which will require an initial investment of approximately U.S.$1 billion, the biggest hotel investment in Mexico in the past 30 years. The development will have 3,000 rooms and will begin its first step of construction in this quarter, starting operations in 2022. Additionally, Wyndham has announced its plan to add 15 more hotels to its current portfolio within the next year, generating investments of around U.S.$300 million.

  • EQUINIX TO ACQUIRE DATA CENTERS FROM AXTEL.

    Mexican telecommunications company Axtel has signed a strategic agreement with Equinix, a global infrastructure and data center company, which involves a consideration of approximately U.S.$175 million and through which the latter will acquire a new entity that will control three former Axtel data centers. The agreement will also allow Axtel to sell Equinix’s services worldwide as part of its solutions offer. The deal is currently subject to the approval by the Mexican Federal Institute of Telecommunications.

  • NEW JOINT VENTURE: FEMSA AND JETRO.

    Mexican bottler Fomento Economico Mexicano, or Femsa, entered into an agreement to acquire a minority stake in U.S.-based retailer Jetro Restaurant Depot for approximately U.S.$750 million. Both companies will form a joint venture to bring Jetro’s business model to Mexico and other Latin American markets, while allowing Femsa to gain exposure in the U.S. wholesale cash and carry sector. Femsa also recently announced that it will place unsecure senior notes for U.S.$2 billion in the NYSE, with maturity dates set in 2029 and 2049.

  • HIGHWAY CONCESSIONS COMING.

    In an attempt to counter the current global crisis, the Mexican government is currently reviewing highway and mass transit concessions to improve the country’s road network and attract around U.S.$1 billion from private investors. At least six highway concessions will soon be launched to the private sector while the government will destine funds for the bus systems of the Mexican cities of Guadalajara and Ciudad Juarez.

  • CHEVRON BUYS STAKE OF DEEP-WATER BLOCKS.

    Chevron, U.S.-based multinational energy corporation, has signed an agreement with a unit of British-Dutch oil and gas company Shell to buy a 40% stake in three deep-water blocks awarded to Shell in a Mexican energy auction last year. The deal has been approved by the National Hydrocarbons Commission. Chevron already operates two consortiums for exploring and developing deep-water blocks in the Gulf of Mexico.

  • CITLA ENERGY BEGINS DRILLING PROGRAM.

    Mexican company Citla Energy, jointly with consortium members Eni and Cairn Energy PLC, recently announced the launch of their exploration drilling program in shallow waters in the southeast of the Gulf of Mexico, with an approximate investment of U.S.$350 million. The program will include three wells and the perforation of two oil blocks between the last quarter of 2019 and the first quarter of 2020, as well as geoseismic studies in the area.

  • MEXICO’S FIRST PRIVATE REFINERY SET FOR 2020.

    Oil companies Refmex and Caxxor Group, the latter being an operative branch of the British investment fund National Standard Finance, will construct the first private refinery in the country with an investment between U.S.$800 million and U.S.$1 billion. The refinery will be located in the Mexican State of Tamaulipas, and will begin construction in mid-2020. Additionally, Caxxor Group will invest approximately U.S.$944 million in the construction of three ports which will serve to connect Mexican products with markets such as United Arab Emirates, Russia, Honduras and Latvia.