WSJ – A small shareholder group says Wal-Mart’s longtime auditor, Ernst & Young, knew about possible bribery in Mexico long before the company disclosed it to U.S. authorities, highlighting a little-plumbed area of U.S. anti-corruption law.
El Siglo de Torreon – Coca Cola and Bimbo initially recorded a drop in consumption by Mexicans because of the Special Tax on Production and Services (IEPS), said a study by Kantar Worldpanel. Sales are expected to recover this year.
Travel Weekly – JetBlue, which has already built a substantial presence in Latin America and the Caribbean, is expanding to one of the biggest markets in the region. The airline will launch daily service between Mexico City and Fort Lauderdale and Orlando on Oct. 1.
Reuters – Grupo Aeromexico reported that the US banking giant Citigroup sold its significant equity stake of nearly 16 percent in the company. Citi shares will be purchased by different shareholders and directors.
EFE – Mexican opposition senators are calling for a thorough investigation into possible wrongdoing by the Mexican unit of Spanish construction group OHL and local government authorities in the setting of highway tolls.
Chicago Sun-Times – Mondelez International, the maker of Oreos and Chips Ahoy cookies, will start talks today, Friday, with its labor unions to decide whether a bakery on Chicago’s South Side or a plant in Mexico gets a major upgrade.
EFE – Mexico’s SuKarne said it opened a packing plant in Nicaragua that will process 173,000 tons of meat annually. The $115 million plant, which is of the same design as the packing plants in Mexico, will create 500 direct jobs.
Sentido Comun – Petroleos Mexicanos canceled a third contract with Paragon Offshore for work on an oil platform this week after the state-owned oil company reduced its spending due to the collapse in oil prices.
Owens-Illinois Inc. is counting heavily on Mexico for a dash of growth in the sluggish global market for glass bottles.
The Perrysburg, Ohio-based company announced Wednesday an agreement to pay $2.15 billion for Vitro’s food-and-beverage glass container business, the largest in Mexico. The agreement includes Vitro’s five glass-container plants in Mexico and one in Bolivia.
Chip Dillon, an analyst at Vertical Research Partners, said the planned acquisition could be “a game changer” in terms of investors’ perception of potential growth at Owens-Illinois.
The company is the world’s largest maker of bottles for beer, wine and liquor, but sales have declined in recent years amid weakness in Europe and Australia and a partial retreat from China, where Owens-Illinois found local price competition too stiff.
EFE – OHL Mexico has shifted into damage control mode following the resignation of an executive implicated in a scandal over illegal recordings that has led to a sharp drop in the price of the firm’s shares on the Mexico City Stock Exchange.
Reuters) – Spanish infrastructure group OHL posted an 18.7 percent drop in first-quarter net profit on Wednesday, hit by a lower contribution from its motorway business in Mexico where the firm is investigating allegations about overcharging the government.