Government Seizes Grupo México’s Property / Banamex Purchase
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Government Seizes Grupo México’s Property / Banamex Purchase

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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Wed, 05/24/2023 - 12:29

Government Takes Control of Grupo México Asset. President Andrés Manuel López Obrador said that an agreement is being negotiated, after the Navy occupied Ferrosur. "It is not expropriation; we are rescuing the concession."

The previous week, López Obrador signed a decree declaring 120km of rail, property of Grupo México, of public use, transferring them to the state-owned company Ferrocarril del Istmo de Tehuantepec. Subsequently, the company's facilities were taken over by elements of the Ministry of the Navy. Grupo México stated there was a contract for the construction of a second route with operational independence that would be handed over to the Ministry. However, the government rescinded the agreement. Grupo México stated that it is still in talks with authorities.

Banamex Purchase. López Obrador said that negotiations for Grupo México to purchase Banamex have ended. He added that there is still the possibility of the government acquiring Banamex. "Yesterday we were informed that negotiations with Grupo México were suspended because they are asking for more guarantees. The government could buy it. We do need a bank.”

So far, Citigroup has valued Banamex at US$12 billion. However, the offers received, including Grupo Mifel's, are well below this amount. Grupo México, one of the largest copper producers in the world and the main one in Mexico, was considering acquiring Banamex. The purchase would have increased the company's financial capacity, boosting its mining, infrastructure and transportation operations. This weekend it was rumored in social networks that Grupo Mexico had withdrawn due to differences among the shareholders.

Migration. López Obrador said his government seeks to guarantee a safe migratory flow now that Title 42 has been eliminated.

This month, Title 42, one of former US President Donald Trump's toughest immigration policies, was terminated. Consequently, representatives from the US and Mexico met to agree on additional measures to regulate migration. The new strategy focuses on fighting human smugglers and traffickers, addressing the root causes of migration and creating regional migration centers.

In March 2020, at the beginning of the COVID-19 pandemic, the Center for Disease Control and Prevention (CDC) endorsed the Title 42 policy, which prevents asylum seekers from applying for US protection and allows the US to send migrants to either their countries of origin or Mexico within the first few hours of their arrival. According to CDC authorities, the policy was necessary due to the increase in COVID-19 infections in the US. Since the policy's implementation, more than 1.8 million deportations have taken place, according to US government data.

Photo by:   Gobierno de México

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