Reuters – Losses at embattled Mexican construction firm ICA widened 62 percent in the first quarter from the same period last year to 1.37 billion pesos ($79.2 million), as revenue dropped steeply.
WSJ – Coca-Cola Co. said it plans to transfer its soda manufacturing and distribution in Texas and parts of Oklahoma to a joint venture headed by Mexico’s Arca Continental. The letter of intent with Arca, Coke’s second-largest bottler in Latin America, comes as Atlanta-based Coke accelerates efforts to divest plants and trucks in order to focus on marketing and its more profitable concentrate business.
Dario – The Federal Consumer Protection Agency (Profeco) undertook a program of verification and monitoring for pharmacies. It began on Tuesday and will end on Friday.
Sentido Comun – Grupo Lala, the leading producer of dairy products in Mexico, plans to invest 125 million pesos ($7 million) to expand its operations and meet the increasing demand of consumers in western Mexico.
El Siglo de Torreon – After 50 years in the market, Alsea will seek to give a new flavor to Vip’s renewing its image, menu and concept, in addition to reactivate its expansion plan with the opening of five to 10 restaurants over the next 18 months.
Aviation Week – Across, Mexico’s premium business aviation services provider, will buy a mixed fleet of 23 Embraer business aircraft with an estimated value of over $260 million at current list price.
Expansion – Axo Group, which distributes the Tommy Hilfiger brand in Mexico and Phillips-Van Heusen (PVH), owner of the Calvin Klein brand worldwide, announced a joint venture to grow both brands in Mexico.
PR Newswire – ZKW Holding of Austria has opened a production plant in Silao, Guanajuato, that will manufacture main headlights for premium automobile manufacturers in the NAFTA region.
Reuters – Altos Hornos de Mexico (AHMSA), one of Mexico’s largest steelmakers, said a judge approved its $1.7 billion debt restructuring plan, bringing to an end a 17-year suspension of payments.
Zack’s – Starwood Hotels & Resorts Worldwide announced the debut of Aloft hotel in Veracruz, the main commercial seaport in Mexico, and Queretaro, one of the fastest-growing cities in the country.
CBC – Mexico is proving to be a low-risk, high-reward business venture for Canada’s TransCanada at a time when the pipeline company is struggling to construct new projects elsewhere in North America.
Reuters – Mexican state-owned oil company Pemex said it has paid off 92 billion pesos ($5.08 billion) in debt outstanding to contractors and would continue to settle its obligations in the coming months.
EFE – Mexico’s No. 1 television broadcaster, Grupo Televisa, said it would take legal action against those responsible for an anonymous letter that accuses senior company executives of diverting some $1 billion in cash payments for political infomercials into personal offshore accounts.
Sentido Comun – Volaris, the second airline in Mexico, said in April it carried 21.1 percent more passengers than in the same month last year, its 18th consecutive double digit increase.
Sentido Comun – Grupo Aeroportuario Centro Norte, or OMA, manager of 13 Mexico airports, said its passenger traffic rose 5.3 percent in April, the 56th consecutive increase but the smallest in the last 25 months.
Sentido Comun – Fibra Inn announced that revenue for lodging in their hotels open at least a year, rose 20.6 percent in April against the same month last year , the second largest increase of the year.
Bloomberg – Telefonica is finally making strides in Mexico, where it had struggled to increase its wireless market share past 20 percent in the face of a giant competitor, billionaire Carlos Slim’s America Movil.
680 News – Canada’s Gildan Activewear is expanding its low-cost manufacturing presence by entering Mexico with the acquisition of the apparel division of Ennis Inc. for $110 million. The firm makes T-shirts and fleece products largely sold under the Alstyle brand to screenprinters and mass marketers in the U.S., Canada and Mexico.
By Starr Spencer / Platts
The winners of acreage from the first three bidding rounds in Mexico last year are moving ahead on plans to develop oil from the country’s major energy reforms, with the first wells expected as early as fourth-quarter 2016, representatives of those companies said Tuesday.
Two of the operators, Talos Energy and Roma Energy Holdings, are US headquartered. The third, Mexico’s PetroBal, was formed last year by minerals magnate Alberto Bailleres, president of conglomerate Grupo Bal which owns the world’s largest silver producer.
PetroBal will drill its first well on its block, in Mexico’s Bay of Campeche, by year’s end with US partner Fieldwood Energy, Carlos Morales Gil, previously director general of E&P for Mexican state oil company Pemex, said at the Offshore Technology Conference.
After that, “we will analyze the well results, maybe drill a few more wells in 2017, and propose a development plan,” Gil said, adding first production will likely be in 2019.
Mexico’s three licensing rounds so far — actually, these were three phases of its Round One — all took place in 2015. A fourth phase featuring 10 deepwater blocks is planned for December. In addition, Roma Energy Holdings CEO Alexandro Rovirosa told Platts on the conference sidelines that it will drill its first well early next year on a block it won in a separate Mexico bidding last December.