AHMSA Auction Set for December; Sale Expected by January 2026

Ismael Leija Escalante, Head, Democratic Union, stated that the auction for the steel company AHMSA could be announced in December, potentially allowing the sale to the highest bidder by January 2026. After meeting with trustee Víctor Aguilera in Saltillo, Leija noted that a new group of investors toured the Unidad Hércules mines, part of MINOSA, last weekend. These visits are part of ongoing technical assessments by various companies evaluating the steel plant and its mining assets.

Leija highlighted that the Second Commercial Bankruptcy Court will operate normally throughout December, with its holiday break starting in January. This schedule could allow the auction notice to be approved before year-end, as the trustee has submitted all required documentation “accurately and on time.”

He confirmed that multiple investors remain interested in AHMSA’s steel operations as well as its coal and iron mines. Leija mentioned a recent visit by Jindal Steel Work USA, the North American subsidiary of an Indian steel group.

In addition, several major companies, including ArcelorMittal, Villacero, Cargill Financial Services, and Nippon Steel, have formally expressed interest in acquiring AHMSA’s industrial assets. Experts note that interest from international firms like Nippon Steel and Cargill could bring advanced technologies and more sustainable practices, while domestic companies such as Villacero and ArcelorMittal may pursue integration or expansion opportunities. Final decisions will be influenced by modernization costs and environmental compliance requirements.

Expressing cautious optimism, Leija said the process could support regional economic recovery and ensure eventual payment to workers. After years of difficulties, he remarked that “this phase is finally concluding” and expressed confidence that federal authorities will oversee the auction to ensure a fair process.

The AHMSA asset portfolio is valued at approximately US$1.326 billion, serving as the benchmark for bids. The process remains complex, as the company’s liabilities exceed MX$61 billion, including tax debts, obligations to suppliers and financial creditors, and outstanding payments to workers. Any buyer will be required to guarantee payment of labor rights and assume pending obligations, providing certainty for active employees.

What Happened to AHMSA?

In 2019, Alonso Ancira, former CEO, AHMSA, was arrested in Spain following an investigation into bribery involving PEMEX officials, who were allegedly overcharged for the sale of a fertilizer plant in northern Mexico. Some of the illicit proceeds were allegedly funneled into Odebrecht accounts. Following Ancira's arrest, CFE canceled several contracts with AHMSA. Subsequently, President López Obrador's administration reached an agreement with Ancira for him to return US$200 million, which was the estimated overcharge from the fertilizer plant sale to PEMEX.

On Nov. 30, 2023, AHMSA halted steel production. In early 2024, Grupo Acerero del Norte entered into an agreement to sell a majority stake in AHMSA to a group of foreign investors for US$200 million. This transaction was part of a broader financial restructuring plan aimed at addressing the company’s bankruptcy and facilitating its recovery.

Since AHMSA suspended operations, Mexico has lost roughly 4Mt of annual steel production. Imports have partially covered this gap, increasing costs for construction, automotive and infrastructure sectors. The shutdown has severely affected central Coahuila. Monclova and nearby municipalities have experienced significant job losses. Around 10,000 AHMSA workers and 4,000 MINOSA employees remain in uncertainty, with months of unpaid wages and benefits.