|
Energy
Mexico OKs Pipeline To Future Arizona Refinery
November 23, 2005
Mexico has granted Arizona Clean Fuels, which hopes to build the first U.S. refinery since 1976, permission to build and own a pipeline expected to cost USD 650 million that would take Mexican crude to the proposed plant.
Pemex Recovers USD 560 Million In Fuel Stolen From Pipelines
November 24, 2005
Pemex has recovered USD 560 million in stolen fuel this year as it beefs up security along its pipelines. The company has found 119 taps in the 12,000 kilometers of pipelines it has traversing the country, and has taken legal action against thieves that has resulted in 14 convictions. Pemex blames pipeline thieves for many of the accidents along its network in recent months.
Schlumberger To Provide Pemex With Technology To Drill Deepwater Well
November 24, 2005
Pemex will use technology provided by oil services company Schlumberger to drill its deepest well to date in the Gulf of Mexico. Schlumberger will provide its technology in the same way Pemex contracts various oil services companies to help it build oil wells and platforms.
back to top
Mining
Grupo México To Lose USD 1 Billion Amid Lower Copper Prices
November 21, 2005
According to mining sector analysts, Grupo México will stop receiving approximately USD 1.2 billion between 2006 and 2007 as a result of the 38% reduction that the copper price will undergo on average in that period.
back to top
Trade & Investment
Mexico Hopes To Join Mercosur In Late 2006
November 24, 2005
Mexico is working with Mercosur members to join the South American trade block sometime late next year, Foreign Minister Luis Ernesto Derbez indicated. He will be working with Argentina, Brazil, Paraguay and Uruguay during a December 9 meeting to ensure that joining Mercosur wouldn’t conflict with Mexico’s other trade agreements in the region.
back to top
Banking & Financial Institution
Carlyle Raising 1st Mexico Fund, Targeting USD 250 Million
November 23, 2005
The Carlyle Group is raising Carlyle Mexico Partners LP, a USD 250 million fund and its first to target companies with a Hispanic customer base. The fund is geared toward buyouts as well as growth investments in Mexico and in U.S. companies that have a significant Hispanic customer base or cross-border initiatives. International Finance Corp. has agreed to invest USD 20 million.
Insurers Up Estimate Of Hurricane Impact To USD 2.15 Billion
November 23, 2005
The insurance industry revised upward its estimate of claims from the three hurricanes that hit the country this year to USD 2.15 billion. The latest estimate from the Mexican Insurers Association (AMIS) comes a little over two weeks after an initial prognosis of USD 1.7 billion in claims from hurricanes Wilma, Stan and Emily.
Amex Seeks Non-Banking Partners To Grow Latin America Operations
November 25, 2005
American Express is looking for non-banking partners such as airlines to grow and keep its competitive edge in Latin America. Amex will keep targeting its four largest markets in Latin America: Mexico, Brazil, Argentina and Puerto Rico. The company sees attractive growth perspectives for both its platinum card and its dollar-denominated credit card.
Online Purchases With Credit Cards Grow 190%
November 23, 2005
The number of online purchases with credit cards in the first half of 2005 came to 84,268, a 190% hike from the same period of 2004. The average purchase amount dropped from MXN 965 to MXN 798 in the same period.
back to top
Business & Industry
Anti-Monopoly Agency Upholds Coca-Cola Fine
November 22, 2005
The Federal Competition Commission has upheld on appeal a USD 15 million fine levied against Coca-Cola Co.’s Mexico subsidiary and some of its bottlers for allegedly pressuring shopkeepers to not offer another cola brand at their stores.
Ajegroup To Open New Plant And Enter Alcohol Market
November 24, 2005
Ajegroup is planning to open a new soft drinks plant in Guadalajara and to move into the alcohol market next year. With an investment of between USD 5 million and USD 12 million, the plant will add 1 million liters per day to production in Mexico. Ajegroup’s plans to attack the beer industry were set back earlier this month when Congress passed a law forcing brewers to be more ecological. However, it is determined to go ahead with its plans.
Cobaspa To Open Recycled Paper Plant In San Antonio Area
November 21, 2005
Cobaspa, a manufacturer based in Puebla, will select either San Antonio or Seguin as the location for a USD 42 million recycled paper plant. The Texas location would produce recycled paper, which would then be exported to a Puebla plant to complete finished products such as toilet paper, napkins and paper towels.
Tequila Exports To Africa Reach USD 3 Million
November 25, 2005
In the last four years Mexican exports to Africa have grown four times, reaching USD 180 million by the end of 2004. Mexico’s main trading partners are South Africa, Egypt and Libya. In 2004 tequila exports came to USD 3 million, almost three times higher than in 2002. Tequila is Mexico’s leading export product to Africa.
back to top
Automotive
Desc Ends JV With Dana
November 23, 2005
Mexican conglomerate Desc and U.S. auto parts maker Dana Corp. agreed to dissolve their partnership. Dana Corp. said that as a result of the deal, it will acquire 100% ownership of five factories in Mexico that produce light vehicle axles and driveshafts. Desc will take full control of four transmission and aftermarket gasket factories in Mexico and the U.S.
Honda To Invest USD 52 Million To Expand Plant
November 24, 2005
Japanese automaker Honda will invest USD 52 million to expand its plant at El Salto, Jalisco during the 2005-2006 period. The company expects to increase its auto parts production capacity and to construct a spare-parts warehouse.
Auto Output To Double In Five Years – Economy Ministert
November 25, 2005
Mexico will more than double its automobile production over the next five years, Economy Minister Sergio García de Alba said. He also said that investment in the automotive industry over the next five years would total between USD 7 billion and USD 10 billion.
back to top
Construction, Housing & Mortgaging
GE Real Estate Arm Makes USD 450 Million Property Buy, Forms Unit
November 22, 2005
GE Commercial Finance Real Estate acquired a portfolio of 112 industrial properties in Mexico for USD 450 million, marking one of the largest Latin-American real estate transactions to date. At the same time, the company is so bullish on the Mexico market that it has set up a new unit in Mexico, called Intramerica Real Estate Group, to operate properties in that country and to make further acquisitions.
Acciona Gets EUR 40 Million Contract For Hospital
November 21, 2005
Spanish construction company Acciona has won a 25-year contract to build and operate a hospital in Leon, in the country’s first public-private healthcare initiative. Acciona will invest EUR 40 million in the hospital and receive an annual fee of EUR 10.4 million for building upkeep and other nonhealthcare services. The hospital is due to open in February 2007.
Mall Construction On The Rise
November 25, 2005
Almost half of the malls in Mexico (except Mexico City) are old and obsolete. This has created a business opportunity to such an extent that 30 malls are currently being constructed throughout the country. Mexico Retail Properties (MRP) has spent USD 120 million on several projects, the main ones being Ciudad Juarez, Culiacan, Ixtapaluca and San Jose del Cabo.
Authorities Looking At Long-Term Financing For Waterworks
November 23, 2005
The Mexico City government is working with the authorities in the state of Mexico and the federal administration to study financing alternatives for important waterworks in the capital. The authorities do not necessarily need to seek financing from the IADB and must also consider the private sector, although no such commitments or accords have been made as yet.
Officials Welcome Tax Changes That Benefit REITs
November 22, 2005
Mexican officials have welcomed the passage of legislation aimed at facilitating the development of a market for real estate investment trusts in the country. Congress recently changed tax laws to encourage both issuing and trading REITs, known as “fibras.”
back to top
Retail
September Retail Sales Up 5.2% On Year
November 21, 2005
The National Statistics Institute (INEGI) said its retail survey in 33 cities showed sales up 5.2% from September 2004. In seasonally adjusted terms, sales rose 1.73% from August of this year, for a fourth straight month of sequential growth. INEGI said there was significant growth in September in car sales, sales at drugstores, and supermarket sales.
Department Stores’ Credit Portfolio Grows 18%
November 21, 2005
The credit portfolio of the department stores sector (Coppel, Palacio de Hierro, Liverpool and Sears) totaled MXN 27.448 billion in September, up 18% from the same month of 2004. Much of the growth is due to the positive response of clients to using retail store cards when purchasing goods on an installment plan.
back to top
Transportation
Grupo Mexico Buys Ferrosur Railway From Carso
November 26, 2005
Grupo Mexico has bought Mexico’s southern railway Ferrosur from Grupo Carso and Grupo Financiero Inbursa, companies controlled by Slim, for about USD 300 million in shares. Grupo Mexico said the acquisition will give the company seamless transport operations from the Gulf Coast state of Veracruz to the Pacific Coast and the U.S. border.
Cintra Gets Two Bids Each For Aeromexico, Mexicanas
November 21, 2005
Cintra received two bids for each of its two main airlines, Mexicana and Aeromexico. Two companies made separate financial offers for each airline: Mexican hotel chain operator Grupo Posadas and Grupo Xtra, the holding company of Isaac Saba. The rest of the participants stated in the same event their desire to not continue in the process.
Controversial New Yucatán Airport Moves A Step Closer
November 23, 2005
The finance, public works and legislative committees of the Yucatán state congress have approved the controversial Metropolisur project. The proposal now goes to a full congressional vote to see if the project will go ahead. The project would include building a new airport as well as a zoo and a Maya museum and is estimated to need around MXN 1.45 billion.
back to top
Telecommunications & Technology
Telecom Regulator Prepares Next Satellite Tender
November 21, 2005
Mexico’s telecommunications regulator (Cofetel) has completed its proposal for a new communications satellite concession. The proposal is for the 109.2 degrees West orbital position and associated frequency bands. INTELSAT, News Sky, WildBlue Communications and SES Americom would be interested in getting the concession.
CFE Delays Signing Contracts For Fiber-Optic Network
November 24, 2005
The CFE is getting ready to develop a 6,700 km fiber-optic network valued at USD 140 million. The three regions where it will be built (north, central and southeast) have been tendered; however, the CFE has delayed the signing of contracts as Siemens filed a formal complaint before the Public Function Ministry arguing that it was left out of the central region bidding process.
CFE To Start Leasing PLC Network Early 2006
November 23, 2005
The CFE expects to offer carrier services using Power Line Communication (PLC) at the beginning of 2006, over sections of its transmission network. With PLC, concessionaires could offer telephone, video and data services.
Mobile Network Operators Put Big Bet On Data Transmission
November 21, 2005
Data transmission will be the main bet of mobile network operators in the next two years, as they expect the market sector to represent 17% of their revenues. The value of the mobile data market this year will total USD 960 million, 10% higher than in 2004.
back to top
Media & Entertainment
Televisa Wins Spanish TV License
November 25, 2005
Grupo Televisa won a television license in Spain that will give it access to a EUR 2.7 billion advertising market. Spain awarded the license to a group called Gestora de Inversiones Audiovisuales La Sexta, which also includes Spanish producers Mediapro, Grupo Arbol-Globomedia, El Terrat, Drive and Bainet. Televisa plans to spend EUR 200 million in its new Spanish venture between next year and 2010.
back to top
Fishing, Farming & Agriculture
Bancomext Sells Ocean Garden
November 24, 2005
Bancomext has sold Ocean Garden Products for MXN 161 million to a group of Mexican firms made up by Granjas Aqua Tech, Acuicola Boca and Grupo Industrial Pesquero Mexicano. The contract will be signed by December 13 at the latest.
Mexico Could Increase Red Meat Exports – USMEF
November 23, 2005
According to the U.S. Meat Export Federation (USMEF), Mexico could increase its red meat exports, given the fact that it has already entered the highly demanding Japanese market. Mexican producers have been careful to comply with sanitary rules, which could lead to continued expanding of its red meat and probably chicken exports.
back to top
Gaming, Hospitality & Tourism
CIE And Televisa To Import Slot Machines
November 21, 2005
CIE and Televisa are taking advantage of a legal vacuum in the Federal Gaming and Raffles Law to enter the casino industry. The Interior Ministry explicitly prohibits slot machines. However, CIE, Televisa, Caliente and Mio Games will start to import several machines that are not technically slot machines since they are chip-based but that operate games banned by law.
back to top
Economy
Per Capita GDP Grows 11%
November 25, 2005
During the first nine months of the year, the per capita GDP rose 11% from the same period of 2004. According to analysts, the data should be taken with caution since this does not imply a more equitable distribution of income. The rise is more an effect of the reevaluation of the Mexican peso than the real GDP growth.
back to top
Border & Migration
All-American Canal Works Temporarily Suspended
November 21, 2005
According to Mexicali’s Water Commission, the Imperial Irrigation District has decided to temporarily suspend a plan to replace a stretch of the All-American Canal with a concrete-lined channel after considering comments of conservation groups arguing that the U.S. agencies failed to consider economic and environmental effects that the project will have on Mexicali.
back to top
Politics
OECD Names Gurria As Next Secretary-General
November 25, 2005
The OECD named former Mexican Foreign Minister José Angel Gurria as its next secretary-general after he won backing from a majority of the organization’s 30 member countries. His appointment comes at a time when the Paris-based club of industrialized countries is looking to enlarge its membership and embrace emerging economies such as China.
IFE Approves MXN 651 Million Presidential Campaign Spending Limit
November 24, 2005
The Federal Electoral Commission (IFE) has determined that each presidential candidate will be able to spend up to MXN 651 million during his electoral campaign next year. In the 2000 elections the IFE set spending limits at MXN 491 million per candidate.
Poll Shows Close Race In Presidential Election
November 21, 2005
According to a poll conducted by Reforma newspaper, Lopez Obrador would receive 29% of the vote compared to 28% for Calderon. Roberto Madrazo would receive 21%. During the survey 13% of respondents said they did not know whom they would vote for.
Slim Wins Political Support For Jobs Pact
November 22, 2005
Carlos Slim won support from two main presidential candidates for his political and economic views. Felipe Calderon and Roberto Madrazo signed on to Slim’s call for a new economic order: the National Accord for Unity, the State of Law, Investment and Employment, otherwise known as the Chapultepec Pact.
back to top
Crime & Safety
Federal Agents Arrest Major Juarez Cocaine Kingpin
November 21, 2005
Mexican federal agents have arrested a top drug kingpin who seized control of the powerful Juarez cartel and is accused of smuggling five tons of cocaine a month into the U.S. Ricardo Garcia Urquiza, known as “the Doctor,” was detained in Mexico City along with 11 other people. He was responsible for bringing up to 20% of the drugs into the U.S.
Police Commander Shot Dead By Officer
November 25, 2005
A shootout among detectives in a police station near Mexico City left a commander dead and two people wounded. The fighting broke out before dawn, when officers tried to arrest their colleague Eleazar Quintero, who is accused of heading a gang of kidnappers. Quintero shot police commander Juan Victor Rosas as officers shot and wounded Quintero.
back to top
Other
Mexico Leads Stem Cell Heart Implants
November 21, 2005
Mexico leads the world in stem cell heart implants, averaging one implant per week. Stem cell implants can cure ischemic heart diseases, the most common cause of death for men and the second-leading cause for women in the country.
Scientists Seek Funds To Finish Radio Telescope
November 22, 2005
A 17-story radio telescope that could detect radio waves that have been traveling for 13 billion years is being assembled in Sierra Negra in the state of Puebla, thanks to a cooperative effort by U.S. and Mexican scientists. However, the project is over budget, behind schedule and out of money, and scientists are scrambling for benefactors, as they still need USD 25 million to finish it.
Vatican Beatifies Revolution-Era Mexican Martyrs
November 21, 2005
The Vatican beatified 13 Mexican martyrs who died during a Roman Catholic uprising in the late 1920s that was crushed by the Mexican government. Beatification is the last formal step before sainthood.
back to top
*If you would like a full version of any of the articles included in this issue, please contact us so we can furnish you with the original (either in English or Spanish). Please feel free to contact us at your convenience if you need further information or advice on a topic of your interest.
back to top
|
