Mexico in Brief
From Mexico in Brief Newsletter
PROMECAP RAISES APPROXIMATELY U.S.$300 MILLION IN IPO.
Promecap, a Mexican financial investment company, raised approximately U.S.$300 million in an initial public offering, or IPO, of equity through the Mexican stock exchange, in which 30 million “units” were sold at U.S.$10 each. The raised capital will be use to seek investment opportunities in various sectors.
WALMART TO INVEST IN MEXICO AND CENTRAL AMERICA.
Walmart de Mexico and Central America, will invest approximately U.S.$1.1 billion for the opening and remodeling of some of their stores in Mexico, Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. The company also stated that this investment aims in the improvement, in a faster way, of its e-commerce and logistics infrastructure.
GIS TO INVEST IN ITS OPERATIONS IN MEXICO.
Grupo Industrial Saltillo, or GIS, a Mexican auto parts company, will invest approximately U.S.$113 million in 2018, in which 60% of the investment will be destined to increase productivity and profitability in their auto parts operations in Mexico.
NEW ALLIANCE TO DEVELOP AND OPERATE RESIDENCES IN MEXICO.
CCLA, an alliance between U.S.-based Compass Group and CIM Group, jointly with GIC, the sovereign fund of the government of Singapore, will invest approximately U.S.$300 million in the development and operation of residential lease buildings in several cities of Mexico, in which Mexico City, Monterrey and Guadalajara stand out.
FOREIGN GAS STATION OPENINGS IN MEXICO SEEM UNSTOPPABLE.
Akron, BP and Repsol announced their major plans of opening 600, 500 and 200 gas stations, respectively, in Mexico. While Akron stated that the 600 gas stations openings will occur in the next five years, the investment of approximately U.S.$54 million will be made by mid-2019. On the other hand, BP and Repsol are planning their openings to happen on this year.
VIDUSA TO CONTINUE INVESTING IN MEXICO.
Mexico-based real estate developer, Vidusa, will invest approximately U.S.$135 million in the construction of approximately five thousand houses in the Mexican states of Nuevo Leon, in which 90% of the project will be developed, and Jalisco. Also, Corporacion Geo, will invest approximately U.S.$158 million in their new 2018-2023 plan, which targets new constructions in various cities.
FOURTH ENERGY AUCTION STARTS IN MEXICO.
Mexico’s Energy Regulatory Commission, the CRE, and the National Centre for Energy Control, or CENACE, published a call for the Mexican fourth long-term power auction, whose results will be announced on November 2, 2018. The auction follows the Mexican government’s goal of reaching 38 TWh of clean energy supply for 2021.
MEXICO´S PRESIDENT PROMULGATES THE FINTECH LAW.
President Enrique Peña Nieto promulgated this month the Law for the Regulation of Financial Technology Institutions, or FINTECH, which will regulate the financial technology sector, including crowdfunding and cryptocurrency firms. The authorities involved, among which are the CNBV, the Ministry of Finance and the Bank of Mexico, will issue secondary laws, which will determine key details for companies in the sector.
MEXICO KICKS OFF THIRD ROUND OF OIL AUCTIONS IN THE RIGHT DIRECTION.
The Mexican National Hydrocarbons Commission (CNH) held the first phase of the third round of Mexico’s oil auctions, successfully awarding 16 out of the 35 available shallow water blocks through production-sharing contracts. Eight blocks in the oil-rich Southeast basin were awarded to groups that included British-Dutch Shell, Italy’s Eni, Russia’s Lukoil, Mexico’s Pemex, France’s Total, Germany’s DEA Deutsche, Argentina’s Pan American Energy, UK’s Premier Oil Plc and Malaysia’s Sapura Energy Bhd. Two blocks were awarded to Spain’s Repsol in the oil-rich Burgos basin, while another two went to Premier Oil Plc. Finally, a consortium between Pemex, DEA Deutsche and Spain’s CEPSA won two blocks of the Tampico-Misantla and Veracruz basins, and another two in that area were won by a consortium of Pemex and CEPSA. All of these contracts cover prospective resources estimated at the equivalent of 513 million barrels of crude and overall require minimum investment of U.S.$442 million and up to U.S.$8.6 billion over the life of the contracts. The first production is expected in 2022.
FIRST AUCTION OF UNCONVENTIONAL RESOURCES TO BE HELD IN MEXICO´S ROUND 3.3.
Nine blocks of unconventional resources, or shale, within the northeastern state of Tamaulipas and in the Burgos Basin, will be auctioned in Round 3.3 on September 5 of this year. The undersecretary for Hydrocarbons of SENER stated that the potential of the nine blocks is “gigantic” or at least four and a half times as large as the 37 on offer for the preceding Round 3.2.