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.
CCTV -The $1.2 billion China-Mexico private equity fund managed by a World Bank unit announced that it was investing $140 million in a U.S. backed energy firm, Citla Energy in Mexico.
Sentido Comun – Party City Holdco, a US retailer specializing in items for parties, announced the opening of its first store in Mexico, as part of its alliance with Oprimax Group, the holding company of Office Max in Mexico.
Sentido Comun – Mexican construction group Empresas ICA will present a restructuring plan to cut and extend the terms of its debt. It is cutting the size of its board and has named four new directors after the departure of the two brothers Quintana Kawage, family members with the largest stake in the company.
El Dario – Cemex reached an agreement for the sale of certain assets in the United States to Grupo Cementos de Chihuahua, for $400 million. The assets, which will be sold, consist mainly of cement plants in Odessa, Texas; Lyons, Colorado; and three cement terminals and business supplies in El Paso, Texas and Las Cruces, New Mexico.
Reuters – Mexican mining, rail and infrastructure company Grupo Mexico said its first-quarter net profit rose 20.9 percent compared to the same period a year ago due to higher metals production and a big jump in investment gains.
Reuters – America Movil said on Wednesday first-quarter profit fell more than 40 percent from a year ago, as mobile competition from AT&T Inc intensified in Mexico and it started paying rent on cell towers after a sweeping regulatory overhaul.
Sentido Comun – Grupo Financiero Santander Mexico, a subsidiary of Spain’s largest financial institution, increased its net interest income by 18 percent in the first quarter of 2016 for outstanding performance in credit granted to companies.
Sentido Comun – Coca Cola Femsa, the largest bottler of Coca Cola products in Latin America, reported first quarter income higher than expected by analysts, buoyed by better prices and higher sales volumes in some regions.
Sentido Comun – Genomma Lab International, a manufacturer, distributor and marketer of drugs and products for personal care, reported a 3 percent increase in revenue in the first quarter, driven by double digit growth in sales in the U.S.
Sentido Comun – America Movil said national television networks in Mexico, Grupo Televisa and TV Azteca, may not broadcast the Olympic Games in Rio de Janeiro because it bought the rights to air the games being held in June.
Reuters – Swiss bank Credit Suisse has recruited at least a dozen wealth managers in Mexico from rival UBS, a source familiar with the matter said, part of efforts to beef up its private banking business.
WSJ – Retailer Wal-Mart de Mexico said its net profit rose 30 percent on the year in the first quarter as healthy consumer spending continued to stoke sales. Walmex reported quarterly net profit of 6.72 billion pesos, or $387 million.
Sentido Comun – Mexichem says it will experience a shortage in the coming weeks of vinyl chloride monomer pipes because of the explosion at its plant in Coatzacoalcos, Veracruz.
Sentido Comun – Grupo Bimbo, the world’s largest bakery company, reported a 13.2 percent increase in sales during the first quarter of 2016, a development driven mainly by the exchange rate and a good performance in Latin America.
Sentido Comun – El Puerto de Liverpool, the company that owns the largest chain of department stores in Mexico, increased its revenues by 12.4 percent during the first quarter of 2016 compared to the same period last year.
Sentido Comun – Grupo Elektra, a leading financial services company, reported a 3 percent drop in revenue in the first quarter due to the poor results obtained by its banking subsidiary Banco Azteca.
Sentido Comun – Simec Group, a supplier of special steel products in Mexico and the United States, reported a 12 percent drop in revenue during the first quarter of this year compared with the same period last year, mainly due to a fall in exports.