Mexico in Brief
From Mexico in Brief Newsletter
A BILLIONAIRE INVESTMENT.
As there is rapid demand growth in international travel, U.S.-based Delta Air Lines Inc. announced that it will invest approximately U.S.$1.2 billion in their associated airlines: Virgin Atlantic, Aeromexico, and Latam Airlines. After these transactions, Delta will build an equity stake of 20% in Grupo Aeromexico and ten percent in Latam Airlines Group. Delta Air Lines also announced a possible capital investment into Virgin Atlantic of approximately U.S.$530 million.
THE RISE OF THE UNICORN ERA.
After receiving financing of approximately U.S.$60 million, and only 12 months after inception, Merama, a startup that boosts e-commerce in Latin America, became a unicorn company after it achieved a valuation of approximately U.S.$1.2 billion. Another example of the rising of the unicorn companies is Clara, a startup of a business credit card, which reached a valuation of approximately U.S.$1 billion after closing a new round for “Series B” investment for approximately U.S.$70 million. Both startups have operations in Brazil, Mexico, Peru, Chile, and Argentina.
ANOTHER MILLIONAIRE INVESTMENT FOR 2022.
Transportation holding company Kansas City Southern de Mexico (KCSM) plans on investing approximately U.S.$122 million in 2022. KCSM assures that the amount may increase due to the number of opportunities it has identified for clients, employees, and other companies that will come as a result of the merger announced in March of this year with Canadian Pacific Railway, in which they will create the first railway network connecting the United States, Mexico, and Canada. In 2021, KCSM ended up investing approximately U.S.$150 million instead of the approximately U.S.$118 million announced at the beginning of the year.
SANTANDER’S MILLIONAIRE INVESTMENT.
Banco Santander, the Spanish bank group, plans on investing approximately U.S.$520 million in Mexico for 2022, which will be destined for systems, infrastructure, and digital development. Over the last year, Banco Santander has invested approximately U.S.$500 million in technological infrastructure in Mexico, and during the next three years, the bank will direct approximately U.S.$6 billion in technology for Latin America.
PEMEX ISSUES NEW DEBT.
The Mexican state-owned petroleum company, Petroleos Mexicanos, better known as PEMEX, announced that it will be issuing new debt and that the Mexican government plans on investing approximately U.S.$3.5 billion into the oil company to help manage its liabilities. PEMEX is planning a series of measures to improve its financial condition, including offering U.S. dollar-denominated global notes.
CFE’S BONDS IN THE MARKET.
The Mexican Federal Electricity Commission, or CFE for its acronym in Spanish, made the first public offer for the repurchase of 14-2 stock certificates for an amount of approximately U.S.$389 million. With this transaction, CFE kicks off operations in Mexico under this format in the national capital market, expanding the offer of instruments and investment strategies for both bondholders and issuing companies. Additionally, CFE placed more bond certificates for approximately U.S.$525 million, maturing on November 25, 2025.
WALMART’S MILLIONAIRE INVESTMENT.
U.S.-based Walmart’s Mexican subsidiary, Walmart Mexico and Centroamerica announced the construction of a new distribution center in Mexico in which it will invest approximately U.S.$150 million. From such amount, approximately U.S.$30 million will be invested in technology and innovation. The new center will open in 2024 and will supply about 240 stores from different states in Mexico. Additionally, the center will generate more than 2,000 direct and indirect jobs.