Reuters – Mexican cement maker Cemex said on Thursday it had launched a tender offer for up to $500 million in outstanding 7.250 percent senior secured notes due in 2021. The early tender date was Oct. 14, 2016, with a second tender deadline set on Oct. 27, 2016.
Fortune – The Mexico unit of SolarCity, the rooftop solar developer controlled by billionaire Elon Musk, aims to invest as much as $1 billion over the next five years. The projected outlay will depend on Mexico keeping at current levels an incentive known as net-metering that requires utilities to buy surplus power generated by rooftop solar panels.
Bloomberg – Cisco Systems Inc. plans to spend as much as $4 billion in Mexico through 2018 to expand production, creating jobs in the country even as the American company cuts its global workforce by 7 percent. The spending will lead to the 270 new direct jobs and 77 related positions. The biggest maker of equipment that runs the internet plans to upgrade its factories and increase production through contract manufacturers.
Sentido Comun – HSBC Mexico has launched a new credit focused on the acquisition of electric and hybrid cars. Called Inmediauto Verde, the plan allows up to 60 months to pay at 9.70 percent interest.
Reuters – In some of the first signs of how some investors in Corporate America are bracing for a President Donald Trump, several large investors have expressed concern to Citigroup management in recent private meetings about the impact a victory for the Republican might have on its Banamex subsidiary.
Flight Global – As part of a plan to recover from early production problems, Icon Aircraft will build a new factory in Tijuana to fabricate composite airframes for the A5, a two-seat amphibian sold in the light sport category.
Oil Price – When Mexico opened up its energy sector for private investors in August 2014, oil prices were hovering above the US$100 mark, and the big price crash had not started yet. Two years later, in the ‘lower for longer’ price environment, Big Oil seems hesitant to jump on the joint-operating-agreement bandwagon with state-run company Petroleos Mexicanos, or Pemex, in the Trion field in the Perdido Fold Belt in the northwestern Gulf of Mexico just next to the U.S. border.
Sentido Comun – Altos Hornos de Mexico, or Ahmsa, the largest steel producer in Mexico, said it plans to invest about a billion dollars in the north of the country over the next two years. The investment will go to processing plants to produce steel products and steels for the automotive industry.
Sentido Comun – Groupo Vidanta, a developer of resorts, golf courses and rental property, announced the development of a new convention center in Nuevo Vallarta being built in the middle of the group’s five hotels.
Sentido Comun – Grupo AeroMexico said passenger traffic rose 6.7 percent in August over the same month last year, the second biggest gain of the year but lower than the growth of 7.1 percent recorded in the same month 2015.
Sentido Comun -Grupo Aeroportuario del Sureste, or Asur, the administrator of nine airports in the country, reported a 5 percent increase in August passenger traffic compared to the same month of 2015. This increase represents the second lowest increase in the past 29 months and the worst for an eighth month since 2011.
Sentido Comun – Grupo Aeroportuario del Pacífico, or GAP, which manages 12 airports in Mexico and one in Jamaica, said passenger traffic at Mexican air terminals grew 14.6 percent last month compared to the same period last year, the thirteenth double-digit advance followed and the best showing for August in 10 years.
Sentido Comun -Grupo Aeroportuario Centro Norte, or OMA, the manager of 13 airports in Mexico, increased passenger traffic by 10.7 percent in August over the same month last year, the 60th consecutive increase.
Reuters – Mexico’s Infraestructura Energetica Nova (IEnova) has agreed to buy 100 percent of the Ventika wind farm from subsidiaries of Blackstone and minority partners. IEnova will buy the wind farm, which has installed capacity of 252 Megawatts and is in Nuevo Leon, for $852 million, including $477 million of debt.
Reuters – Mexican construction firm ICA reported a much wider loss in the second quarter compared with the year-earlier period, as revenue was nearly halved and financial costs rose. The company, which has not posted a profit since 2013 and has defaulted on multimillion-dollar debt payments, lost 3.36 billion pesos ($184 million) in the April-June period.
Bloomberg – Mexico’s biggest department-store operator, El Puerto de Liverpool, became a dealmaker to jump start growth. Its second major purchase this summer is winning over investors who were startled by the first one.
Bloomberg – Wal-Mart Stores Inc.’s Mexican unit agreed to sell its Suburbia clothing chain to El Puerto de Liverpool, Mexico’s biggest department store chain operator, in a deal valued at 19 billion pesos ($1.03 billion).
By Azam Ahmed, Randal C. Archibald and Elizabeth Malkin / New York Times
All is not well in the kingdom of Carlos Slim.
For more than 25 years, he has dictated the terms of Mexico’s telecommunications industry and built an empire, making him one of the world’s richest men.
Slim and his family are billionaires 50 times over. He has stood at the very top of the Forbes World’s Billionaires list — more than once. His flush years in Mexico enabled him to span the Americas with companies that touch nearly every facet of modern life: telecom, banking, construction, retail and media, among others.
But at home in Mexico, the game is changing. And there is not much he can do about it, analysts say.
Determined to bring his dominance to an end, leaders from Mexico’s three biggest political parties have put aside their own animosities in recent years, meeting in secret sessions to chip away at Slim’s domain.
Now, the plan they concocted to increase competition in the telecommunications industry, signed into law two years ago, is starting to bite.
Profits for Slim’s flagship company, América Móvil, are in steep decline, falling 24 percent in 2015 and almost 44 percent in the first six months of this year, compared with the year-earlier periods. A closely watched metric of profitability on Wall Street has also fallen, and the company’s stock has dropped by 39 percent in the past year.
Bloomberg – America Movil, Latin America’s largest wireless carrier, posted profit that missed analysts’ estimates as its Mexican unit continued to suffer from more competition and regulatory sanctions.