Mexico’s Arca Continental to Bottle, Distribute Coca-Cola in Southwest U.S.

5/26/16 Wall Street Journal 

14716049305_62495b73a5_bCoca-Cola Co. said Wednesday it plans to transfer its soda manufacturing and distribution in Texas and parts of Oklahoma to a joint venture headed by Mexico’s Arca Continental SAB.

The letter of intent with Arca, Coke’s second-largest bottler in Latin America, comes as Atlanta-based Coke accelerates efforts to divest plants and trucks in order to focus on marketing and its more profitable concentrate business.

Arca is the first Mexican bottler to acquire Coke territory in the U.S. but not the first foreign partner. Hong Kong-based Swire Pacific Ltd. is a major Coke bottler and distributor in the Western U.S. and Japan’s Kirin Holdings Co. owns a Coke bottler in the Northeast.

Coke said in February it would sell all of its U.S. manufacturing and distribution by the end of 2017, part of a broader global divestment drive. It paid $12.3 billion in 2010 to acquire the U.S. territories of Coca-Cola Enterprises Inc., its biggest domestic bottler at the time.

With the latest deal, Coke said it has struck deals to refranchise territories representing about 60% of bottler-delivered volume and 41 of 51 cold-fill production plants in the U.S.  Coke still owns bottling and distribution in California and parts of the Northeast, in addition to other territories.

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Mexico Names New Heads of Pemex, Health, Social Security

2/8/2016 ABC News

120px-PemexA U.S.-educated economist took up the reins of state oil company Petroleos Mexicanos in one of several Cabinet changes announced Monday by President Enrique Pena Nieto.

Jose Antonio Gonzalez Anaya was sworn in as head of the oil company better known as Pemex, which has been hit hard by the plunge in global crude prices as Mexico embarks on an ambitious overhaul of its energy sector.

He replaced Emilio Lozoya, who had been at the post since 2012. Lozoya’s tenure was marked by an explosion at Pemex headquarters that killed 37 people in January 2013, shortly after he took office, and rising fuel thefts from Pemex pipelines.

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Mexico and Colombia join ‘fragile five’ emerging markets

8/13/2015 Financial Times

120px-Philippine-stock-market-boardColombia and Mexico are now members of the “fragile five” group of emerging market nations, replacing India and Brazil, according to analysis by JPMorgan Asset Management.

The Latin American duo, alongside Turkey, South Africa and Indonesia, are seen as the countries most overdependent on potentially skittish foreign investment flows.

The original “fragile five” were worst hit during the taper tantrum of 2013, when foreign investors fled emerging markets. The vulnerability of four of the five (South Africa, Turkey, India and Indonesia, but not Brazil) had been identified by JPMAM before the sell off.

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Slim’s America Movil extends Mexico-U.S. ‘borderless’ plan to prepay

8/16/2015 Yahoo! Finance

cell phones 2America Movil <AMXL.MX> said on Sunday it removed roaming charges on calls to and data in the United States for 40 million Mexican prepay clients as it gears up to prevent new rival AT&T Inc. stealing market share on its home turf.

The company, owned by the family of billionaire Carlos Slim, said calls made to the United States by prepaid customers on “Amigo Optimo” and “Optimo Plus” plans would now be charged local rates. The same would apply when using data in the United States.

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Infographic: World Bank Index Challenges Perceptions of Mexico’s Most Business-Friendly Cities

taxes accounting business3/25/2015 Nearshore Americas

The World Bank’s ranking of the easiest and most difficult cities to do business in Mexico may come as a surprise to investors.

The nation’s capital, Mexico City, is the most difficult place to do business, while the relatively unheralded western city of Colima is the easiest, according to the latest Doing Business index. There is further bad news for more of Mexico’s most mature markets: the World Bank rates Guadalajara, widely known as “Mexico’s Silicon Valley,” as the eighth most difficult place to do business, while Monterrey, which is often described as the nation’s business capital, is only ranked the 16th easiest city to do business in.

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Why Auto Makers Are Building New Factories in Mexico, not the U.S.

By Dudley Althaus and William Boston, Wall Street Journal, 3/17/2015

Audi-Q5CHATTANOOGA, Tenn.—A barren patch in the rugged hills along the Tennessee River is a sign of how Mexico has accelerated past the U.S. South in the global competition for auto investment.

The tract of cleared woodland lies alongside a factory Volkswagen AG set out to build in 2008. VW took an option on the adjacent 800 acres as a place where its Audi unit might build a North American plant someday.

But four years later, when Audi decided to move global production of its Q5 SUV to North America, the prize went to Mexico. Audi now is finishing a $1.3 billion factory in a gritty south-central Mexico town called San Jose Chiapa. The plant’s massive buildings rise like supertankers from dun-colored fields where families scrape by raising corn and beans.

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Mexican President Wraps Up UK Visit with $1bn Oil Deal

AFP, Business Insider, 3/5/2015

Pool/AFP Jonathan Brady
Pool/AFP Jonathan Brady

London (AFP) – Mexico’s President Enrique Pena Nieto ended his three-day state visit to Britain on Thursday by overseeing the signing of deals that boost ties between the two countries in energy, including a $1 billion oil agreement.

Under the deal, Britain will provide Mexican energy firms with a $1 billion credit line (908 million euros) for buying British technology.

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