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Article: ANTI-MONOPOLY COMMISSION RULES AGAINST MERGER OF PRIVATE RAIL COMPANIES.
- Article from:
- SourceMex Economic News & Analysis on Mexico
- Article date:
- May 22, 2002
CopyrightCOPYRIGHT 2002 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The government's anti-monopoly commission (Comision Federal de Competencia, CFC) has ruled against a proposed merger between Ferrocarril Mexicano (FERROMEX) and Ferrocarril del Sureste (FERROSUR), Mexico's second- and third-largest private rail companies. FERROMEX is a subsidiary of mining company Grupo Mexico and FERROSUR is a unit of business conglomerate Grupo Carso. The two rail companies first proposed the deal in late January to consolidate FERROMEX's northwest operations with FERROSUR's southeastern routes (see SourceMex, 2002-02-06).
In proposing the merger, the two rail companies argued that the consolidation of their operations would increase ...