Sentido Comun – Alfa said it plans to invest $1.320 billion, or 17.8 percent less than investments made year past. The company did not disclose why it decided to reduce investments.
Sentido Comun – French aerospace company Safran Group opened a new $40 million plant to repair parts of commercial aircraft engines in the state of Querétaro. The new plant is the company’s fifth in that state and the tenth in Mexico.
Sentido Comun – Alsea, the largest franchisee of restaurants and cafes in Mexico, said that in the last quarter of 2015 same-store sales grew 10.4 percent over the same period a year earlier, driven largely by businesses in South America.
Reuters – HSBC has been sued by the families of U.S. citizens murdered by drug gangs in Mexico, claiming the bank let cartels launder billions of dollars to operate their business.
Reuters -Mexican conglomerate Alfa reported a slight fourth-quarter profit, compared to a deep loss in the year-earlier period. Alfa, which controls petrochemical, car parts, and refrigerated food businesses, posted a net profit of 162 million pesos ($9.41 million).
Sentido Comun – Walmart of Mexico and Central America, the largest supermarket chain in the country, started 2016 with performance not seen in at least the last six years.
Sentido Comun – Grupo Aeroportuario del Sureste, or Asur, said the number of passengers visiting its terminals rose 8 percent last month against the same period last year, the 58th monthly increase but the slowest pace since July 2014.
Sentido Comun – Cemex, the leading cement maker in the Americas, said it posted profits last year for the first time since 2009, something that surprised analysts and generated renewed interest of investors in the producer of materials construction.
By Benjamin Bain and Andrea Navarro / Bloomberg
Mexico’s homebuilding business is staging a comeback less than three years after the industry’s biggest companies saddled investors with losses from collapsing share prices and $2.7 billion in bond defaults.
Builders are dominating the new issuance market, with Corpovael and Servicios Corporativos Javer selling shares since early December and a third company seeking to raise money later this year.
They’re among the competitors that rushed to fill the gap left by the largest three builders, which were forced to downsize following their failures in 2013.
Pent-up demand for new homes hasn’t gone away since housing policy changes by President Enrique Pena Nieto helped lead to the collapse of Urbi Desarrollos Urbanos, Desarrolladora Homex and Corp. Geo.
While Homex and Geo resumed trading last quarter following restructurings and Urbi moves to conclude a deal, it’s the smaller companies that are driving a resurgence in an industry that until recently was given up for dead by foreign investors.
“It’s a good sign that it would seem the sector is coming back to life,” said Jorge Unda, who oversees about $35 billion as chief Latin America investment officer at for BBVA in Mexico City. “The companies that were able to stay in have been more cautious.”
Reuters – Mexican construction firm ICA will not make a $22.25 million interest payment due Feb. 4, two people familiar with the matter said, as the cash-strapped company spirals towards bankruptcy.
Business Standard – Camlin Fine Sciences, through its subsidiary CFS Antioxidantes De Mexico, will acquire a 65 percent stake in Dresen Quimica, the Mexico-based specialty chemicals company, for about $ 7.8 million.
Sentido Comun – Proteak One, the only Mexican forestry company listed on the Mexican Stock Exchange, announced the start of operations at its plant in medium density boards, also known as MDF, in Huimanguillo, in the state of Tabasco, after investing $200 million.
Notimex – Six Flags Entertainment Corp.won approval to open and operate the Aquatic Park Oaxtepec. The 27-hectare public park in Morelos will be named Hurricane Harbor and open in early 2017.
Sentido Comun – Grupo Sports World, one of the largest fitness chains in Mexico, announced the opening of a new store in Merida, the 47th gym in the country.
CNNExpansión – A federal judge authorized Deutsche Bank to sell shares of Grupo Aeroportuario Centro Norte (OMA) that belong to Mexican conglomerate ICA.
UPI – The Miami headquarters of the tequila company owned by Mexican actress Kate del Castillo, who is under investigation for her ties to drug lord Joaquin “El Chapo” Guzman, has been abandoned for months.
San Jose Mercury News -Yahoo is saying “Hasta la vista” to Mexico and Argentina. The troubled Internet search and media company said it would close what a spokeswoman called “small, sales-focused offices” in Mexico City and Buenos Aires.
BizTimes – Strattec Security Corp. plans to build a facility in Leon, Mexico for the production of car door handles as part of an ongoing joint venture with ADAC Automotive.
Reuters – Mexico’s Grupo Financiero Banorte, the country’s fourth-largest bank by assets, reported a fourth-quarter profit of 4.94 billion pesos ($287 million). The bank, the biggest still owned by Mexicans, did not offer a comparison with the same period last year.
Reuters – Mexico’s ICA has filed a criminal complaint against employees of Deutsche Bank in a bid to prevent the bank from seizing the collateral for a now-defaulted loan to the embattled construction firm.