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.
Financial Times – Mexico’s state oil company Pemex posted a $4.4 billion loss in the second quarter as crude production continued to slip and global oil prices stayed low. It’s the 15th straight quarterly net loss for Mexico’s largest company.
Platts – Enrique Peña Nieto is scrambling to save the legacy of his much-lauded reform of Mexico’s oil industry as the doors of Mexico’s political cycle close on the president amid electoral defeats, political violence and a tough global environment for the oil industry. Meanwhile, Pemex chief Jose Antonio Gonzalez Anaya seeks to defend the formerly invulnerable castle of the state oil company from what some fear could be imminent collapse.
Reuters – Mexico’s Grupo Mexico posted a net profit of $350.3 million in the second quarter of this year, down by 4.3 percent from the same period a year earlier, the company said Monday.
Sentido Comun – Low-cost airline Volaris reported sales 25.2 percent higher in the second quarter than in the same period last year, confirming that it is close to becoming the largest operator of domestic flights in the country.
Reuters – Mexican glass manufacturer Vitro said it had agreed to purchase the flat glass unit of U.S. company PPG for around $750 million, giving it a foothold in the U.S. and Canadian markets.
Reuters – Mexican conglomerate Alfa posted a 70.9 percent drop in profits in the second quarter, dragged down by a depreciation in the peso currency, the company said.
Sentido Comun – Femsa, the Mexican company manager of Oxxo convenience stores, presented a new image of its brand Oxxo Gas with which the company begins operating gas stations in 14 states Mexico.
Sentido Comun – Grupo Aeroportuario del Pacífico, or GAP, said the number of passengers transited through its facilities rose 17.3 percent in June compared with the same month last year.
Sentido Comun – AeroMexico said it carried 6.1 percent more passengers last month than in June 2015, its best advance in the last six months, but lower for a sixth month of the last two years.
Korea Times – Kia Motors, South Korea’s second-largest carmaker, said that sales of its vehicles more than tripled in Mexico in May from nearly a year ago. Kia said it sold 4,610 units in Mexico in May, compared with 1,499 units in July last year when the carmaker began to sell its vehicles there.
Sentido Comun – Camlin Fine Sciences (CFS), an Indian chemical company focused on antioxidants, has acquired a majority interest in the Mexican company, Dresen Química, with which it seeks to boost its expansion into the Central American and Andean markets.
Sentido Comun – InterContinental Hotels Group, or IHG, a British hotel company, forged an agreement with the Mexican company Alkoer to develop two Staybridge Suites hotels in Silao and Irapuato, Guanajuato.
Sentido Comun – LMI Aerospace, a US supplier of components and engineering services for the aerospace industry, will transfer its production line of sheet metal to its plant in Mexicali, after the closure of the manufacture of these products in their plant in Wichita, Kansas.
Reuters – Mexico’s ICA said it expects to delist from the New York Stock Exchange (NYSE) after July 17, as the cash-strapped construction firm’s share price has tumbled on debt woes.
Reuters – Carlos Slim’s construction arm has teamed up with three local builders to bid for two runways for Mexico City’s new airport worth a combined $1.56 billion, sources say.
Payments – Western Union has just expanded its presence in Mexico by enabling customers in the U.S. to send money directly into roughly all Mexico bank accounts.