Mexican bottling company Arca has “postponed indefinitely” its offer to buy a non-controlling stake in local food processor Grupo Herdez. Arca had said it would spend up to $288 million in Herdez, a family-owned business controlled by the Hernández-Pons family. Monterrey-based Arca is Mexico’s second-largest Coca-Cola bottler.
Category: Regions
Posted inDaily Brief
Multivalores Applies For Banking License
Mexican financial group Multivalores is applying to the Ministry of Finance for a license to establish a bank. The group, which already owns a brokerage, an investment fund operator and a leasing company, feels the creation of a bank would consolidate its position in the financial system. Mexico’s banking sector is dominated by foreign-owned institutions such as Spanish banks BBVA and Santander, Citigroup of the US and HSBC of the UK.
Posted inDaily Brief
Peru’s Fiscal Surplus Doubles
Peru’s fiscal surplus rose in April to just over $1 billion, almost double its level at the same time last year, according to the country’s Central Bank. The increase has been driven by the improvement in tax collection, the Bank said.
Posted inDaily Brief
Chávez Embraces Bolivia
Venezuela President Hugo Chávez’s visit to Bolivia has concluded with the signing of 16 cooperation agreements which will further cement the close relationship between Chávez and Bolivian counterpart Evo Morales and heighten the nervousness of some foreign investors. Venezuela has announced, presumably much to the chagrin of Brazilian oil operator Petrobras, that it will invest $1.5 billion into the Bolivian energy sector via its state-owned oil entity PDVSA. In addition, it has said it is committed to buy $100 million of Bolivian debt. This would certainly help Morales’ government with its budget shortfall this year, and is in line with Chávez’s goal to promote a regional capital market.
Posted inDaily Brief
Paraguay Slapped With Old Debt
Paraguay is being sued by nine European banks who are demanding the payment of a $85 million debt dating back to 1986-1987. A Swiss court has ruled that the debt, a result of fraudulent loans taken out in the name of Paraguay and allegedly involving the complicit knowledge of then president of Paraguay, Alfredo Stroessner, must be settled by the present government of the country. Paraguay says it will not comply and will take the case to the International Court of Justice in the Hague. The banks involved include: Banca di Roma International, Banca Popolare di Milano, Banque Buxelles Lambert, Cassa di Risparmio di Torino and DG Bank.
Posted inDaily Brief
Uribe To Serve Four More Years
Colombian president, Alvaro Uribe, made history Sunday by becoming the first Colombian leader to be re-elected to serve two consecutive terms. Uribe was returned with 62% of the votes, beating nearest rival, Carlos Gaviria, who gained the backing of only 22% of Colombians. The president earned widespread voter approval as a result of his hard line on security issues and his successful management of the country’s economy. He persuaded Congress to make constitutional amendments to allow him to stand for re-election, arguing that he needed more time to complete his work. Meanwhile, in line with many other markets in the region, Colombian stocks bounced back after the dramatic slide of recent weeks. The benchmark stock index, the IGBC, rose 8% on Friday with a record number of transactions for the month. And the country’s Central Bank surprised economists by keeping interest rates unchanged; the benchmark overnight lending rate remains at 6.25%, confounding expectations of a 25 basis points rise.
Posted inDaily Brief
Alsea Raises $68 Million
Mexican fast-food operator Alsea has raised $68 million via a secondary share offering, less than the $85.5 million it had expected to sell. The sale, which was postponed from May 25 following the slide in the Mexican bolsa which reflected the worldwide slump in emerging markets, comprised 18 million shares at a price of 42 pesos per share ($3.78). The sale was managed by the Mexican unit of Banco Santander Central Hispano.
Posted inDaily Brief
América Móvil To Close Deal On Verizon Dominicana
Mexican wireless phone operator América Móvil hopes to close a deal to buy Verizon Dominicana (ex-Codetel), part of the Latin American assets being sold off by the US telecoms giant. América Móvil offered $2.06 billion to buy the Dominican unit in April, along with Verizon’s 28.5% stake in Venezuela’s CANTV for $676.6 million.
Posted inDaily Brief
Banxico Holds Steady
Mexico’s central bank, Banco de México (Banxico), has held interest rates steady for the first time after nine months of reductions. Last month, the overnight benchmark rate was lowered to its current 21-month low of 7% in a cut that surprised the market. Mexico’s economy expanded by 5.5% in the first quarter of this year, spurred on by cuts in interest rates. Despite the recent weakening of the peso against the dollar, the government is confident it will hit its inflation target of 3% this year.
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Ecuador Foreign Trade Minister Resigns
Ecuador’s foreign trade minister, Jorge Illingworth, resigned yesterday, Wednesday, after only eight months in the job. He has been replaced, temporarily, by Manuel Chiriboga, Ecuador’s chief negotiator in the free trade talks with the US. A new minister will be named within the next few days.