Mexico oil sale can handle underwhelming start 14 Jul 2015 The government may award just a handful of 14 contracts on offer as it starts to open up the sector. That’d be no disaster. State-owned Pemex and others are waiting for richer pickings. And Mexico is adapting to investor concerns. A goal of $50 bln of investment may yet happen.
Mexican gusher will benefit from Brazil’s missteps 11 Jun 2015 A new discovery in the Gulf of Mexico comes just as historic energy reforms kick off that should reduce the ability of state oil company Pemex to gum things up. Brazil’s flawed handling of the massive reserves it found in 2007 provides a blueprint for what not to do.
Mexico vote to damn ruling party with faint praise 5 Jun 2015 President Peña Nieto’s PRI will probably remain the strongest party after Sunday’s elections - despite a sluggish economy and voter disgust at corruption and violence. Opposition turmoil helped. But new voting rules may foster change, and economic reform is under way.
Buyers hold cards in $6.4 bln Latam oil deal 26 May 2015 Investors opposed to the takeover of Pacific Rubiales have enough votes to knock the sale off course. But the dissenters would be crazy to push the button. The 34 pct premium looks fair. Without a deal, or a surge in oil prices, Pacific Rubiales’ future looks bleak.
Review: Modernizing Mexico, one feud at a time 22 May 2015 Two Mexicos coexist, one an insular land of hard-to-kill monopolies in politics and business, the other more outward-looking, embracing modernity and even the United States. In “Amarres perros” pundit-politician Jorge Castañeda recalls a life of trying to change the balance.
Mexico oil sale gets $6 bln show of support 6 May 2015 A local conglomerate and private investors are offering a 35 pct premium for Pacific Rubiales. That sounds high for a company hit hard by oil’s plunge and a deal unlikely to have many synergies. But it’s a sign of confidence in Mexico’s pending, long-awaited oil liberalization.
Mexico faces hardest task kicking Latam graft 30 Mar 2015 The Petrobras kickback probe shows Brazil is getting better at dealing with corruption. A Chilean boardroom dispute highlights the role foreign pressure can play. NAFTA has helped set new rules in Mexico, but its one-party history and drug money present huge obstacles.
Univision owners belatedly dial up profit gigante 25 Mar 2015 A $13.7 bln leveraged buyout of the U.S. Spanish-language broadcaster in 2007 ran headlong into an ad bust. A little pluck, in the form of a savvy deal with Televisa, and some luck, thanks to an unexpected source of revenue, turned things around. A decent payday now awaits.
Carlos Slim buys Spanish real estate on the cheap 5 Mar 2015 The Mexican tycoon bought a 25 pct stake in property firm Realia at a discount and is eyeing a takeover. He is also the biggest shareholder of builder FCC, which in turn owns major stakes in Realia and Cementos Portland. Slim effectively controls all three. Minorities beware.
Guest view: Hard to spell Colombia without o-i-l 15 Jan 2015 Latam is exposed to varying degrees to the steep drop in the price of crude. Itaú economists expect Brent to rebound to $70 this year, but the uncertain outlook means Colombia has much to lose. Brazil, Argentina and Mexico can’t afford a prolonged slump. Chile is a clear winner.
More than Slim odds America Movil buys T-Mobile 22 Dec 2014 Carlos Slim’s telecoms empire needs to reduce its dependence on Mexico. The fourth U.S. wireless carrier is cheap, parent Deutsche Telekom doesn’t want it and there’s strategic logic to a deal. The increasingly frightful competition in U.S. telecoms may be a sticking point.
Mexico’s loose purse strings could blunt reforms 2 Sep 2014 President Peña Nieto’s state of the nation address came with big spending plans. The economy gained just 1.6 pct over last year almost entirely thanks to a wider budget deficit. Producing the wealthier Mexico he wants will take more than building new bridges and tunnels.
Pemex troubles could drag down Mexican oil 8 Aug 2014 The nation is lifting its 75-year ban on private drilling while easing costs at the state-owned energy giant. That may boost falling output but won’t do much to make Pemex more efficient. Without a broader overhaul of the company, plans for an oil and gas revival may flounder.
Pemex gives Big Oil an even bigger mess to fix 28 Jul 2014 Mexico’s energy giant lost more money in Q2. Chronic inefficiency is pushing crude output to its lowest since 1990. And the government upped its tax take to 132 pct of Pemex’s income. It’s a blessing and a curse for rivals finally allowed to participate in Mexico’s core oil biz.
Carlos Slim’s three-day workweek comes up short 22 Jul 2014 The Mexican billionaire wants to combine fewer weekly hours with longer working lives. That plan would waste the competence of the relatively young, while leaving many older workers with the wrong skills. Enhanced mid-life education would be a better use of leisure time.
Slim isn’t the only picking to play Mexican oil 16 Jul 2014 Ending Pemex’s crude monopoly may herald a surge in drilling and output. That won’t much move the stock of incoming giants like Exxon. But it should boost Carlos Slim’s Grupo Carso, with its stable of drillers and services firms, and other local talent like Alfa and Grupo Mexico.
Carlos Slim shoved right where he wants to go 9 Jul 2014 The Mexican billionaire agreed to unload some of his $70 bln telecom empire to satisfy regulators. After years of fighting a breakup, the abrupt concession suggests Slim is ready to reallocate his capital. Local TV, energy and banking may beckon as could opportunities overseas.
Pemex and Repsol separation is for the best 4 Jun 2014 The Mexican oil firm is selling most of its stake in its Spanish rival. The investment, made in another era, serves little purpose. Pemex can use the cash at home. For Repsol, the sale removes a stock overhang and underlines the challenge of spending its growing cash pile.
Brazilian blunders fuel a better Mexican oil plan 2 May 2014 State meddling, onerous buy-local rules and limits on foreign control slowed Brazil’s expected boom in crude. So its rival to the north has proposed looser regulation and more freedom for government-owned Pemex. The scheme faces hurdles, but it’s a recipe for boosting output.
Mexican oil cash cow could go dry absent tax fixes 3 Mar 2014 Pemex’s quarterly pre-tax profit dropped 30 pct to $10 bln, but the energy giant had to pay $16 bln in government levies. Investment and production predictably suffered. President Peña Nieto’s revenue-raising reforms and plans to let in foreign cash can’t be enacted too soon.