Leading Mexican companies keep expanding abroad. México :: Mexico

Leading Mexican companies keep expanding abroad


Fecha Miércoles, enero 23 @ 12:16:33
Tema México :: Mexico

MEXICO CITY, Jan 22 (Reuters) - The economy may be in a slump, but Mexico's blue-chip companies are still flexing their buying muscle abroad, as seen in breadmaker Bimbo's major expansion into the United States on Tuesday.

Bimbo, the third biggest breadmaker in the world, on Tuesday said it had agreed to buy the Oroweat bakery division of Canada's George Weston Ltd. (Toronto:WN.TO - news) for $610 million, and will begin marketing quality bread brands in the U.S. market.

Bimbo is seen as a aspiring world-class company, as are many other Mexican outfits that are expanding abroad. Now Bimbo will be making its mark in the U.S., marketing Boboli pizza crusts, Thomas English muffins, and Oroweat bread.

The foreign growth by Mexican companies continues despite belt-tightening at many corporate headquarters as Mexico copes with a recession due to decreased U.S. demand. The United States is the destination for 85 percent of Mexican exports.

``In recent years we have been seeing the growth of the Latin American multinational,'' said Arturo Porzecanski, Emerging markets strategist at ABN-AMRO in New York.

``In the case of Mexico it's part and parcel of Mexico's integration into the North American market and the world ... it's only fitting that Mexican companies buy in the United States and you don't just get U.S. companies buying in Mexico,'' he added.

Telefonos de Mexico (Telmex) (NYSE:TMX - news) , the biggest publicly traded company in Latin America, last week finalized a deal to buy a 39 percent stake in U.S. voice and data services provider XO Communications Inc. (OTC BB:XOXO.OB - news) for $400 million.

Part of the business empire of Mexican billionaire Carlos Slim, Telmex is the favorite Latin American bluechip for foreign investors.

Telmex sister company Latin American wireless and broadband outfit America Movil (NYSE:AMX - news) , which has outperformed all other wireless stocks in the world over the past year, has huge holdings throughout the Americas and is seen continuing that expansion this year.

Both major Mexican broadcasters, TV Azteca (NYSE:TZA - news) and Grupo Televisa (NYSE:TV - news) , invested in the United States last year, strengthening their long-term strategies to reach millions of Spanish-speaking people in that market.

Cemex (NYSE:CX - news), the third biggest cement company in the world, is still working on Indonesia and other Asia expansion, after making the biggest foreign purchase in Mexican history in 2000, buying huge U.S. cement maker Southdown.

Expansion has not been a success in all cases. Industrial and retail conglomerate Grupo Carso -- another arm of the Carlos Slim empire -- bought major U.S. computer retailer CompUSA two years ago and has struggled to turn the company around.


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