Tag Archives: Mexico

AT&T to exit America Movil partnership

Mexican based, America Movil said it has agreed to buy back AT&T’s 8.27 percent stake in the company ending a 20 year partnership between the two.

The move enables AT&T to secure regulatory approval for its proposed takeover of DirecTV.

Its shareholders Inmobiliaria Carso and Control Empresarial de Capitales will buy the shares from AT&T International for USD 5.57 billion. AT&T said it expects to realise a profit of 8-10 cents a share from the sale, depending on the final tax on the sale.

Mexico Broadband NIBA Network tender won by Axtel

Axtel, the Mexican based fixed line operator has won a project tender by the Mexican Ministry of Communications and Transportation (SCT) for the deployment of broadband connections across 40 metro areas in Mexico. The goal of the initiative is to increase the bandwidth for commercial internet access for the NIBA network through interconnection points in three cities; Monterrey, Guadalajara and Mexico City to bring high speed network connections to 60 percent of the Mexican population.

Axtel’s bid of USD 2.82 million (MXN 37.6 million) for the next four and half years successfully outbid eight other operators in the tender. Axtel will offer a 30 Gbps service for the NIBA network projectto increase broadband access in higher education institution, research centers, and large hospitals.

Déjà Vu: Apple Loses Another iPhone Trademark Battle in Mexico

iFoneComing off the heels of a recent legal battle with Brazilian mobile maker Gradiente, Apple has just lost another iPhone trademark dispute. This time, it was in Mexico, where the US electronics giant was accused, and ultimately found guilty of infringing on another company’s brand name, known for the past ten years as “iFone”.

Though the court ruling is recent, the trademark issue is not. The two companies have been going at it over naming rights since 2009. It was at that time that apple tried to register the “iPhone” name in Mexico, much to the chagrin of the people at iFone, who demanded a prompt rejection of the trademark registry from the Mexican government. They got their wish, and Apple was turned down based on the similarity their iPhone product had with the iFone brand, a trademark that had been registered in Mexico since 2003, years before Apple released its signature smartphone.

Much like in the Brazil-Gradiente case, Apple sued, and claimed that the iFone brand was inactive, and therefore not applicable for challenging trademark infringement. They lost the case, however, when a federal court ruled that the name and brand were still very much alive, and in active use by its owners.

The Mexican Supreme Court has now rejected Apple’s appeal, giving the company no alternative other than to seek a civil settlement with the company, to attempt to regain access to its trademark. It may not be as easy to sway iFone, however, as they may have thought. In an attempt to prove sole rights over their brand, iFone has now launched their own suit against Apple and the mobile networks for infringing its trademark.

According to Eduardo Gallestegui, a member of iFone’s legal council, “Apple started the controversy, their first step was to file a lawsuit, they didn’t previously approach the company.” While Apple does in fact hold a trademark for the iPhone in Mexico, it only covers the hardware, and not the telecom services associated with it. Now iFone seems determined to prove a point and they show no signs of backing down. For now, it appears, Apple is in for a long fight.

Mexico Poised to Pass Brazil as LATAM's Most Powerful Economy

Mexico. We’ve all heard of the recent political unrest. We’ve all heard the dark tales of violence, corruption, and a seemingly never-ending drug war. But little has said by the outside world about the country’s successes, growth, and position in the new global economy. Meanwhile, beyond the bad news and political propaganda, Mexico has quietly placed itself at the top of the pack in the region; ready to become the region’s economic leader. With recent success in a variety of industries, a prime geographic location, and a strong, cheap workforce, Mexico is poised to become THE place to do business in Latin America, even giving Brazil a run for their money.

Why Mexico? Why now?

Mexico’s economic success is nothing new to anyone familiar with the North American republic.  Since the birth of NAFTA during the ’90’s, Mexico has been able to leverage free trade with the US and Canada to bolster its trade market, and in turn ramp up production across a number of industries. Automobile production, consumer services, beverage production/distribution, and telecom have been some of the main industries adding to the economic development, and all have great potential for future growth.

A company like America Movil, ranked #5 on the Latin Target  500 list, is not only growing in Mexico, but also as a MultiLatina expanding further afield is holding dominant market shares in many countries outside the region. This is also happening with companies like FEMSA, who controls a significant part of Coca Cola’s distribution and production, and Grupo Bimbo, who has quietly become the world’s biggest baker and distributor of baked goods. With this wave of sustained growth, many economists predict that within the next 10 years, Mexico may be able to pass Brazil as the region’s top economy.

 The World’s Most Energy Secure Nation 

According to an official report by the U.S. Chamber of Commerce, Mexico has long positioned itself as the world’s most energy secure nation. This statistic was measured amongst the 25 largest energy-consuming countries. Although we may just be realizing it now, this has actually been the case for the past 30 years. While this may not necessarily be great for direct investment due to state ownership of Pemex, the country’s larges energy company, it does a lot to help fuel (no pun intended) the local economy. Petroleum and other gas sales represent 40% of the Mexican government’s revenue, thus strengthening government capital, and making it easier for other companies to operate under a stable economic climate.

There are also many residual benefits to this energy dominance, as Pemex works with many companies to help make its operation run smoothly. In recent years, the company has awarded hundreds of millions of dollars worth of development rights to outside businesses, giving private companies long-term contracts. In the first quarter of last year (2012), Pemex reported revenues at USD $10.6 billion, up nearly 30% from the previous year.

 

The bottom line is that with steady trade and exports (USD $227 billion in 2012), a growing telecom sector, energy stability, and a burgeoning working class, Mexico’s future looks as bright as ever. Industries are growing, investment options are widening, and the world is finally starting to listen. Mexico is poised to become the biggest economy in Latin America, and they are ready for it, one step at a time.

For more insight and access into Mexico’s top companies, including America Movil, FEMSA, and Pemex, take a test drive of Latin Target and find out how Latin Target can enable your sales and marketing teams with contact info on decision makers in the region.

Mexico's Telmex Blocked from offering Pay-TV

A Mexican court has denied approval for Carlos Slim’s Telmex to offer television services on the local market, El Economista reports. The court’s decision means Telmex will have to resubmit an application to change its operating licence under the new administration of President Enrique Pena to include television, Reuters reports.

Telmex has unsuccessfully tried for years to enter the Mexican pay-TV market. Back in August 2012, Mexico’s Supreme Court declined to review a suit filed by Telmex against Mexico’s communications ministry. The decision sent the case back to a lower appeals court, the Seventh Collegiate Court in Administrative Matters, which has now confirmed as “legal” the Ministry of Communications’ decision to deny Carlos Slim’s company its license modification to include provision of pay-TV services.

Will Hostess’ Loss be Bimbo’s Gain?

They say a Twinkie can last for 1,000 years before it goes bad, and slowly disappears into the proverbial circle of life. Unfortunately, the company that makes them cannot. Last week, one of America’s most recognizable food brands, Hostess, announced that it would be closing its doors for good. On the heels of bankruptcy, debt, private equity buyouts, and a workers’ strike, the Texas baked goods maker decided that it could no longer sustain itself as a profitable business. But while scorns of Devil Dog, Ho Ho, and Wonder Bread lovers lament the end of an era, there may still be hope to save their sugary snacks. Hope, in this case, that comes from one of Mexico’s biggest businesses, Grupo Bimbo.
Grupo Bimbo

Who is Bimbo, and where did they come from?

Grupo Bimbo, S.A.B. de C.V. (BIMBOis a publicly traded bakery concern that has a $10 billion value, as well as holding the title of being the world’s largest bread maker. The company is listed on the Latin Target 500 and Latin Target 100 MultiLatina Rankings, and has seen significant growth in the last 10 years. Sliding under the radar of many in the US, Grupo Bimbo has more than doubled its profit since 2002, bringing in roughly $400 million annually. With this recent news coming out of the states, the Mexican bread maker could potentially expand its reach even further by buying rights to Hostess’ already strong brands. The power of Hostess’ brand recognition, partnered by Bimbo’s efficient corporate structure and massive production capabilities, may be the key to dominating the US market; something the Mexican juggernaut has had in the works for years.

Why the timing is perfect

While some could call this premature speculation, there are many signs that indicate that a Bimbo purchase may be imminent. For starters, they’ve already made public interest in Hostess more than once. They tested the waters on a purchase in the early 2000’s, eventually passing on the Texas-based baker, opting instead to purchase a company called Earthgrains. And in 2007 they made an unsuccessful bid for the company during the first round of bankruptcy, and shelved the buyout indefinitely.

Hostess Brands

So what’s changed now?

Well, for starters, the company’s relative positioning in the current economy. Little by little, as Hostess shrunk, Bimbo grew, and this gives them significantly more leverage. With Grupo Bimbo’s profit margins at a steady gain, it lowers the risk of taking on Hostess’ baggage. And while the Mexican company hasn’t publicly made interest in a purchase yet, many signs point in that direction. While Bimbo does sell its products in the US, its branding is mostly geared towards Latin Americans already familiar with Bimbo products from home. Adding Hostess has the potential to break the market wide open for Bimbo, and solidify their brand recognition with millions of customers across the US. Our prediction is, it’s only a matter of time.

A strong MultiLatina like Grupo Bimbo can’t afford to be ignored. And with ELEVATE’s Market Access Tool, we give you inside access to the top players in both this company, as well as hundreds of key businesses throughout the region. Don’t miss out on one of the strongest tools available for doing business in Latin America.  To find out more, visit our website www.latintarget.com, or call us at (312) 265 6538.

Contactless Payments Trial Begins in Mexico City

VeriFone Systems has announced that it is providing the merchant payment solutions to support a contactless payment trial in Mexico City by the Mexican bank Banamex.

Banamex is implementing a full-scale contactless payment deployment. In the first phase, several thousand VeriFone contactless-enabled card acceptance systems will be deployed to 1,900 merchants in the Mexico City metropolitan area. The bank is also issuing 100,000 contactless credit and debit cards.

The bank will deploy the VeriFone VX 520 to merchants who use traditional standalone countertop systems, and the VX 820 advance PIN pad to larger retailers that integrate payment systems to electronic cash register systems.

By end of 2012, the bank expects to have issued 1 million contactless cards and to have deployed 12,000 payment acceptance systems. For purchases of less than 250 pesos (approx. US$15), contactless payments wont require a signature by the customer.

Get access to Banamex and other Banks in Mexico with Latin Target.

What is Latin Target? Find out at www.latintarget.com