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

  • HUGE SUCCESS FOR SECOND & THIRD PHASES OF MEXICO’S ROUND TWO.

    The Mexican National Hydrocarbons Commission (CNH) held the second and the third phases of the second round of Mexico’s oil bidding process, and exceeded last month’s feat when the first phase was held. Round 2.2 offered ten license agreements, nine for the exploration of gas-rich blocks in the Burgos Basin, just across the Texas border with the Mexican northern states of Nuevo Leon and Tamaulipas, and one block with extra-light crude and gas in the Southeastern Basin. Round 2.3 featured 14 licenses: four in Burgos Basin; six in the Southeastern Basin, three in the state of Veracruz and one in the Tampico-Misantla Basin. The big winner of the night was Monterrey-based Jaguar Exploracion y Produccion, winning with bullish offers six blocks in Round 2.2 in consortium with Canada-based Sun God Resources and five blocks in Round 2.3. The only other block awarded in Round 2.2 was taken by the consortium between Mexican-Spanish Iberoamericana de Hidrocarburos and Mexico-based Servicios PJP4, which also won two blocks in Round 2.3. The other winners for Round 2.3 included the consortium between China-based Shandong Kerui, and Mexican companies Sicoval and Nuevas Soluciones Energeticas, which won three blocks; and, with two blocks awarded each, Mexican-based Carso Oil & Gas, as well as the consortium between Monterrey-based Newpek, the energy unit of Alfa and Mexico-based Verdad Exploration. The estimated total investment for these licenses could reach at least U.S.$2 billion over the 30-year lifespan of the contracts.

  • HUGE OIL DISCOVERIES IN MEXICO.

    The international oil consortium between U.S.-based Talos Energy, Mexico-based Sierra Oil & Gas and U.K.-based Premier Oil announced the fifth largest discovery anywhere in the world in the last five years in the shallow waters of the Gulf of Mexico, which contains an estimated 1.4 to 2 billion barrels of light oil - twice as expected. Additionally, the Italy-based multinational oil and gas company, Eni, revealed a discovery of an estimated 1 billion barrels reserve.

  • CHEMICAL COMPANY TO BUILD PLANT IN MEXICO.

    The global producer of solid sodium cyanide, The Chemours Company, which is a result of DuPont´s split, will invest approximately U.S.150 million in the construction of a new mining solutions plant in the Mexican State of Durango.

  • THERMION TO INVEST IN RENEWABLE ENERGY PROJECTS.

    Thermion, Mexico-based power generation company, will invest approximately U.S.$2 billion in the construction of 10 wind and solar power plants in the Mexican States of Tamaulipas, Sonora, Coahuila, Nuevo Leon and Guanajuato in the next five years. The project will be financed with the placement of CKDs in the Mexican stock market.

  • NEW STEELMAKER IN THE MEXICAN STATE OF GUANAJUATO.

    Japan-based Nucor Corporation and JFE Steel Corporation started the construction of a new steel plant in the city of Silao, in the Mexican State of Guanajuato, in which they will invest approximately U.S.$270 million by the second half of 2019. The plant will have the capacity to produce 400 thousand tons of steel sheets per year.

  • BIMBO CONTINUES ACQUISITION STRATEGY IN THE U.S.

    Mexico-based & global baking giant Grupo Bimbo announced the purchase of the multinational U.S.-based East Balt Bakeries for approximately U.S.$650 million by the end of 2017. The acquisition represents an expansion in eight new markets in Europe, Asia and Africa for the global baking company.

  • MINING COMPANIES TO INVEST IN MEXICO.

    Torex Gold, Goldcorp and Fresnillo are some of the companies that are planning investments in Mexico for approximately U.S.$2.4 billion for gold projects. As a result of these investments, the mines of “Dolores de Pan American Silver”, “San Agustin de Argonaut Gold” and “La Yaki de Alamos Gold” will be expanded between 2017 and 2020.

  • BACHOCO ACQUIRES LA PERLA AND ALBERTVILLE QUALITY FOODS.

    Industrias Bachoco, S.A. de C.V., a Mexico-based poultry producer, announced the acquisition of two companies for approximately U.S.$163 million. The target companies are U.S.-based Albertville Quality Foods, and La Perla, a Mexican pet food company.