Mexico in Brief
From Mexico in Brief Newsletter
IENOVA CONTINUES ITS MAJOR INVESTMENTS IN MEXICO.
IEnova, a Mexican private company dedicated to the development, construction and operation of major energy infrastructure projects in the country, announced the investment of approximately U.S.$110 million in a solar park in the Mexican State of Sonora. Furthermore, IEnova will invest approximately U.S.$275 million in the construction of three refinery storage terminals, two ground terminals and a marine terminal in the Mexican States of Veracruz and Puebla and in Mexico City.
MORE MEXICAN COMPANIES INVESTING IN RENEWABLE ENERGY PROJECTS.
Spain-based renewable energy company Acciona will build a wind farm capable of avoiding the emission of 739 thousand tons of CO2, with an investment of approximately U.S.$600 million, in the Mexican State of Tamaulipas. Additionally, Mexican retain giant Soriana will inaugurate its new wind farm, which involved an investment of approximately U.S.$105 million and will supply its 165 stores in that same State.
MEXICHEM TO ACQUIRE ISRAELI IRRIGATION COMPANY.
Mexico-based multinational Mexichem, whose products range from petrochemicals to plastic pipes and which operates more than 120 production plants in over 30 countries, will acquire an 80% stake in Israeli irrigation company Netafim for approximately U.S.$1.5 billion; the transaction is pending approvals. Kibbutz Hatzerim will remain as a minority shareholder with a 20% stake.
VISTA OIL & GAS COMPLETES MILLIONAIRE IPO.
Mexico-based energy investment firm Vista Oil & Gas, with the participation of private equity firm Riverstone Capital, completed its initial public offering in the Mexican Stock Exchange raising approximately U.S.$650 million, making it the first publicly-traded oil firm in Mexico.
PLANIGRUPO TO PLACE U.S.$350 MILLION IN THE MEXICAN AND U.S. STOCK MARKETS.
Mexico-based developer and operator of shopping malls, Planigrupo, will place approximately U.S.$300 to U.S.$350 million in a secondary Mexican and U.S. stock offering, expected to occur next October. The proceeds will be used to fund the acquisition of its Capital Development Certificates, or CKDs, and to finance future projects.
MORE MAJOR PLAYERS ENTERING THE MEXICAN FUEL RETAIL MARKET.
U.S.-based energy company Chevron Corp announced the opening of its first gas station in the Mexican State of Sonora, which marks its first step in the opening of several stations in the Mexican States of Sonora, Sinaloa, Baja California and Baja California Sur. In addition, Glencore, the U.S.-based trading firm, announced their starting plans to enter Mexico´s fuel market too, with the importation of fuel for Mexico’s domestic market by February 2018.
LALA ACQUIRES BRAZILIAN DAIRY COMPANY.
Grupo LALA, which is a Mexico-based dairy company, agreed to acquire Brazilian dairy producer Vigor from J&F Investimentos for approximately U.S.$1.84 billion, after the Mexican company’s board approved the proposals.
CUBICO SECURES FINANCING FOR RENEWABLE ENERGY PROJECTS IN MEXICO.
Cubico Sustainable Investments raised approximately U.S.$450 million in financing for a 600MW renewable energy project, which comprises a 250MW wind farm to be known as “El Mezquite” in the Mexican State of Nuevo Leon and a 2350MW solar PV project to be denominated “Solem” in the Mexican State of Aguascalientes. The financing will be funded by the North American Development Bank, Bancomext and Banobras, for “El Mezquite”, and the Inter-American Investment Corporation, the Canadian Climate Fund, China Co-Financing Fund, the International Finance Corporation, Mitsubishi UFJ Financial Group, Bancomext and Banobras, for “Solem”.
“INTELLIGENT ELECTRIC NETWORKS” COMING TO MEXICO.
The Mexican Ministry of Energy, or Sener, will invest in the next years approximately U.S.$665 million on “intelligent electric networks”, defined as the sum of the electric flow services with those of information technologies, which are intended to increase the reliability, stability, safety and efficiency of the national electrical system, according to this energy authority.