Carlos Slim's America Movil Wins Approval to Acquire Telmex Internacional

On February 11, 2010, Mexico’s competition regulator, the CFC, approved a plan proposed by Carlos Slim’s America Movil, S.A.B. de C.V. (BMV: AMXA to merge with Telmex Internactional S.A.B. de C.V. (BMV: TELINTL) and Carso Global Telecom S.A. de C.V. (BMV: TELECOMA1), two of Slim’s other telecom companies. The proposed merger would have broad implications for Mexico’s telecom sector.

Analysts say a merger would allow America Movil, Mexico’s dominant telecom company to provide Latin American consumers with package deals on internet, cable T.V., and wireless and fixed line telephone service.

Mexico's Peso Falls on Concern About U.S. Jobless Claims

Mexico's Peso fell for the second consecutive day of trading, as traders worried that the country's economy would be affected by economic troubles in the U.S., Mexico's major trading partner.

Another force driving the decline in Mexico's peso might be investor concern that Spain, Portugal and Greece will struggle to pay for their budget deficits, eroding demand for higher-yielding, emerging-market currencies. According to data from Bloomberg, Mexico’s bonds rose, pushing the benchmark yield to a two-month low.

“Risk aversion will continue for a while around the world,” undermining the peso, said Gerardo Margolis, vice president for emerging markets at a Toronto, Canada office of TD Securities Inc., a bank, told reporters.

Mexico's currency slid 0.8% to 13.0483 per U.S. dollar as of 10:07 a.m. New York time, from 12.95 yesterday, paring its gain this year to 0.3%.

Spain's Banco Santander Says Latin America a Best Bet for Investors in 2010

Spain's Banco Santander (Madrid Stock Exchange:SAN) highlighted Brazil, Mexico, and Chile, saying Latin America was the best investment choice for investors in 2010.

Press Sources Report that Mexico's Grupo Televisa is Seeking to Compete with Carlos Slim in Telecom Market

Although no official sources have confirmed the story, several press sources have reported that Mexican television giant Grupo Televisa S.A. (BMV:TLEVISA) and French telecom giant Vivendi SA (EPA:VIV) are discussing a joint bid for mobile-phone airwaves that the Mexican government plans to auction this year, a venture that would increase competition for Carlos Slim's America Movil (BMV:AMXA) and Telmex (BMV:TELMEXA).

FEMSA Cerveza - Heinken Merger Agreement Does Not Include Opt-out Clause, CEO Says

Jose Antonio Fernandez, the CEO of Fomento Economico Mexicano S.A. (BMV:FEMSAB) told Mexican press sources that after "meticulously" discussing every detail involved in the sale of the company's beer business, FEMSA Cerveza, Mexico's second largest beer company, to European beer conglomerate Heineken N.V. (AMS:HEIA), executives at the two companies chose not to include traditional "opt out" or merger dissolution clauses.

Investor Alert: Carlos Slim's America Movil Seeks to Acquire Telmex Internacional

Mexican billionaire Carlos Slim's America Movil, S.A.B. de C.V. (BMV:AMXA), a company that is currently Latin America's largest wireless telephone service provider, filed a statement with Mexico's securities market regulator, the BMV, saying that the company is seeking a merger with Telmex Internactional S.A.B. de C.V. (BMV:TELINTL) and Carso Global Telecom S.A. de C.V. (BMV:TELECOMA1), in order to cut costs and follow a broader industry trend of consolidation.

Lawsuit Threatens to Block Femsa Cerveza Sale to Heineken

According to local press sources, the Williamson family, the former owner of several key Fomento Economico Mexicano S.A (BMV:FEMSAB) subsidiaries, including Cervecería Cuauhtémoc Moctezuma, is filing a lawsuit that seeks to derail the sale of FEMSA's beer division to Heineken N.V.(AMS:HEIA), the world's third largest beer company.

Mexican Press Sources Report InBev to Increase Stake in Grupo Modelo

Mexican press sources reported that global beer giant Anheuser-Busch InBev NV (NYSE:BUD), the world's largest beer producer, will seek to increase its stake in Grupo Modelo S.A. (BMV:GMODELOA), Mexico's largest beer company, after rival beer giant Heineken NV (AMS:HEIA) acquired FEMSA Cerveza, Mexico's second largest beer company, a subisdiary of Fomento Economico Mexicano S.A. (BMV:FEMSAB).

Citi Says Latin American Stocks Should Rise by 10-15% in 2010

In a recent note, Citigroup (NYSE:C) said that as lending costs rise Latin American stocks, which almost doubled in value in 2009, may return 10-15% this year

Heineken Agrees to Buy Mexico's FEMSA Cerveza for US$7.7B in Stock

Heineken NV (AMS:HEIA) has agreed to acquire the beer operations of Fomento Economico Mexicano S.A.B. (BMV:FEMSAB) "FEMSA", Mexico's second largest beer producer, in all stock deal worth an estimated US$7.7 billion.

Interest Rate Hike Expected in Mexico as Inflation Increases to 4%

Even though growth is slowing to 3% in Mexico, the country's central bank will likely raise interest rates in order to stamp down inflation and help control rising tortilla and fuel prices.

Gas Natural Sells Mexican Assets for US$1.2B

Looking for cash after acquiring rival Spanish energy firm Union Fenosa S.A., Spanish energy giant Gas Natural sold majority stakes in some of its Mexico-based electricity plants to Mitsui & Co. and Tokyo Gas, two Japanese firms, for US$1.2 billion.

US$558M Lawsuit Against Mexico's Cemex Dismissed by U.S. Court

According to local press sources, a lawsuit seeking US$558 million in damages from Cemex S.A.B. de C.V. (NYSE:CX), Mexico's largets cement company, was dismissed by a U.S. judge, giving the company the right to produce and sell cement at its El Paso, Texas location.

Mexican Afore Pension Funds to Invest New Capital in Local Assets Until Q2 2010

According to local news sources, Mexico’s pension funds, the country’s largest institutional investors, which manage assets worth US$87 billion, will be investing all new capital in domestic assets until the second quarter of 2010.

As Mexico's Economy Contracts, Budget Deficit Widens

Mexico, Latin America's second largest economy, a country that is battling its worst depression since the 1930s, is expected to see its budget deficit widen to 5% of GDP, as tax revenues fall and year on year GDP dips by 6.8%.

Brazil Telecom Sector to Offer Strong Opportunities in 2010

Joao Cox, the CEO of Claro, the Brazilian subsidiary of Mexican telcom giant America Movil S.A.B. de C.V. (BMV:AMXA), told reporters that Brazil’s mobile carriers will probably surpass 170 million lines by the end of 2009, equal to almost 90% of the country’s population.

Citibank Improves Outlook on Mexican Stocks, as U.S. Releases Positive Jobs Data

Citigroup Inc. (NYSE:C) announced that it had raised its outlook on Mexican stocks to "neutral," after the U.S., Mexico's largest export market, announced that job losses in November were the lowest since the outset of the recession, an indication that the U.S. economy may be recovering faster than expected.

Rebounding Remittances in 2010 Could Help Cemex, America Movil

In 2010 an uptick in remittances, money sent by foreign born residents to family members abroad, could help some of Mexico's major companies like Cemex, the cement company, and America Movil, the cell-phone company, that have developed platforms to take advantage of these money flows.

Banorte Writes Off MXP 1 Billion Loss on Loans to Comercial Mexicana

Mexico's Banamex,the country's second largest bank, a 100% subsidiary of Citigroup Inc. (NYSE:C), reported that although it is still taking legal action through bankruptcy procedures, it has decided to officially write off losses worth MXP 1 billion (US$77 million) on loans to Contralador Comercial Mexicana S.A. de C.V. (BMV:COMERCIUBC), a troubled Mexican supermarket operator that was wracked by charges worth MXP 6.3 billiion (US$ 500 million) from bad currency bets made in late 2008.

Ajemex Sues Coca-Cola for US$30 Million

Ajemex, producer of Mexico's popular Big Cola brand has accused larger rival Coca-Cola Femsa S.A.B. de C.V. of engaging in monopolistic practices, and is seeking damages though Mexico's competition watchdog, the CFC, of US$30 million.