Open Market Will Foster M&A Activity

Many players decided to come to Mexico when the energy sector was liberalized. In the case of Norton Rose Fulbright, the global law firm decided to come back to the country where it once had offices because of the potential it suddenly has for its six areas of expertise: financial services, energy, transport, life sciences and health care, technology and innovation, and infrastructure, mining, and commodities. William Wood, Head of Energy and Infrastructure United States, and Global Head of Latin America at Norton Rose Fulbright, says the firm also boasts significant expertise in global regulatory practice. Wood says the company aims to help clients in Mexico with energy transactions, international arbitration and dispute resolution, and cross- border litigation. “Although most litigation matters are filed in the US, our firm has worked on a number of significant litigation matters related to activities and operations in Mexico over the past decade,” he clarifies.

Wood notes that the local content requirements for the E&P bidding rounds will lead to M&A activities in Mexico. “Each time multinational entities enter a new market, companies that have been in the local market for decades have the opportunity to sell their businesses. In addition, the retail  sale of gasoline and other refined products will expand as the market is opened, creating more opportunities for entrepreneurship. It is likely that the new businesses will be followed by a wave of M&As.” Additionally, he mentions that existing businesses in the oilfield services and construction sectors may find attractive offers from suitors needing to expand their multinational offering in Mexico.

Now that Norton Rose Fulbright is back in Mexico, the 331 firm wants to help clients navigate the current regulatory environment. “We can help companies manage their risks in all regulatory areas because we have done this already in many other jurisdictions around the world, and have helped our clients with every type of legal and regulatory challenge facing successful businesses worldwide,” Wood asserts.