The Latin American Foreign Investment Boom: Recent Trends and the Evolution of Multilatinas

multilatinasBy Adrián Blanco Estévez

Latin American companies—both public (state-owned enterprises) and private—have been growing in size and presence abroad, through operations that range from modest representation offices to acquisitions of first-world corporations. The phenomenon of “multilatinas” comprises the growing number of companies that gradually began to invest abroad in the 1990s, but surged forward with a huge wave of investment starting in 2000. In fact, 2010-2012 marked the highest levels of FDI outflows from Latin America in the region’s history.

Mexico is no stranger to the birth of multilatinas. Mexico, along with Brazil and Chile, leads the way in terms of presence of multilatinas, and is the second most important country in the region in terms of FDI outflows, accounting for virtually all outflows from Central America. Additionally, Mexico is the leader among the Latin American countries in terms of investment in the United States. Thus, with 18 multilatinas and 24.5 percent of total FDI outflows from Latin America, the surge in foreign investments by major Mexican companies is clear

This publication, The Latin American Foreign Investment Boom: Recent Trends and the Evolution of Multilatinas, analyzes the multilatina phenomenon in order to define its characteristics today, including political, institutional, economic, and financial factors that explain these companies’ birth, develompent, and transformation into global players.

Download the publication here.

Heineken investing $480 mln to build brewery in Mexico

Reuters, 3/10/15

heinekenDutch brewer Heineken said on Tuesday it will invest 7.5 billion Mexican pesos ($480 million) to build a brewery in Mexico to supply U.S. and Mexican markets.

The brewery in the northern state of Chihuahua will produce five million hectoliters (132 million U.S. gallons) of beer per year, said Marc Busain, managing director of Heineken’sMexico unit Cuauhtemoc Moctezuma, but that could be expanded.

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Mexico’s Cemex Could Sell Part of Business to Pay Down Debt: CEO

Reuters, 2/10/15

mexican pesosMexico’s Cemex could sell part of its business in northern Europe, the Mediterranean and Asia as it seeks to pay down debt, the cement giant’s CEO told Reuters on Tuesday.

Fernando Gonzalez said the firm could also sell 5 to 10 percent of its subsidiary Cemex Latam Holdings, and set aside half of its earnings from asset sales to lower its debt burden.

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China’s CRCC Likely to Win in New Bidding for Mexico Train Project

By Gabriel Stargardter, 1/14/2015

755225_e72ed744d1_m(Reuters) – China Railway Construction Corp (CRCC) looks poised to clinch a contract to build a $3.75 billion Mexican high-speed train system even after its original winning bid was revoked when it became engulfed in a political scandal, say sources with knowledge of the bidding.

Mexico will on Wednesday reveal the fresh bid terms for the tainted train project linking Mexico City with the wealthy, industrial city of Queretaro, which was meant to be one of Mexican President Enrique Pena Nieto’s flagship infrastructure investments.

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Spanish Companies Plan to Invest $14 Bn in Power Projects in Mexico

Fox News Latino, 1/13/2015

energy -wind_energySpain’s Iberdrola, Gamesa and Acciona said they planned to invest nearly $14 billion in Mexico’s energy industry between 2015 and 2018.

Mexico expects to have an installed generating capacity of more than 9,500 MW, a level equivalent to 8 percent of total power generation in the country.

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Mexico to unveil revamped global image

09/23/14 Financial Times

airplane on runwayIf anyone needs convincing about the scale of Mexico’s ambitions on the global stage, they need look no further than plans for a glittering $9bn airport. Big, bold and beautiful, the proposed hub is the embodiment of the government’s latest slogan of a “Mexico on the move”, a country with nearly a dozen transformational reforms under its belt, promising to deliver more competition and better productivity to one of the world’s most up-and-coming markets. The government will launch a revamped global brand next month to cement its image as an enticing trade and tourism power. But internationally, the message is already getting through – and not just to investors. A number of high-profile recent visits, including from potential 2016 US presidential rivals Hillary Clinton and Chris Christie, as well as Facebook’s Mark Zuckerberg, underscore Mexico’s growing presence.

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Exclusive: Mexico gets first bid for $10 billion national mobile network

09/19/14 Reuters

people networkMexico has received its first bid from a consortium to build a $10 billion state-owned mobile network, a linchpin of efforts to break the hold of Carlos Slim’s America Movil on telecom services. Telecom equipment makers Alcatel-Lucent and Ericsson helped the consortium craft the proposal submitted to the government, four sources said. Mexico’s government, which estimates that the network will require an investment of about $10 billion over 10 years, wants to pick a winner in mid-2015, two sources said.

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