Six years after buying U.S. copper giant Asarco and its prized Peruvian assets, Grupo Mexico might opt to sever links with its U.S. unit and end fights with its feisty union.
With all 1,500 unionized workers at Asarco on strike alleging “bad faith” contract negotiations by the company and both sides not even in talks, analysts say Grupo Mexico could turn its back on its troubled U.S. operations.
The Mexicans have openly said they are considering asset sales at Asarco, which Grupo Mexico bought for more than $2 billion in 1999, an acquisition that almost sank the company when copper prices then nosedived.
Analysts say Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research) could simply close Asarco, where costs are high and wage talks and environmental hurdles are a constant headache and financial strain.
“In these conditions, I believe it will be difficult to find a buyer,” said a mining analyst who requested anonymity. Striking a closure deal with U.S. authorities might be an easier option, he added.
More: today.reuters.com
Miners file murder charges against Grupo Mexico
A Mexican union has filed murder charges against mining company Grupo Mexico and the government after 65 miners were killed last month in an explosion at a coal mine.
Mexico's miners' and metalworkers' union said late on Thursday it formally accused Grupo Mexico, Labor Minister Francisco Salazar and two mine inspectors of homicide.
The workers died after a methane explosion at the Pasta de Conchos mine in the northern state of Coahuila on Feb. 19.
Union leaders say Grupo Mexico , the world's No. 3 copper miner, ignored safety concerns but the company has denied negligence.
Co-workers gave
Red Lake Resources options Zacatecas Mexico silver property in deal with Sterling Mining
Red Lake Resources Inc. (TSXV:RL.V) has signed an option deal to earn a 100 per cent stake in the Bolshoi silver property in Mexico.
The Vancouver junior miner said Friday the property in the Zacatecas area of central Mexico consistes of mineral claims covering more than 4,700 hectares in an area where silver mining is carried on.
The deal with a company called Steling Mining requires Red Lake to pay $75,000 US in cash, issue 400,000 shares, and complete $300,000 US in exploration over three years.
The
Merrill Lynch opens Grupo Mexico cover with "buy"
Merrill Lynch began coverage of Mexican copper giant Grupo Mexico with a "buy" rating on Tuesday, pointing to strong prices, a debt restructuring and improvements in returning cash to shareholders.
Merrill Lynch set its 12-month price target for Grupo Mexico at 26 pesos per share. They were trading on Tuesday morning at 18.57 pesos, up 1.31 percent in the session.
Grupo Mexico has leveraged record metals prices to tidy up its finances, reducing net debt from $2.5 billion in December 2004 to $1.4 at the end of June.
Grupo Mexico is the world's No. 3 copper
Grupo Mexico, Axtel, Gol, Tractebel: Latin Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Grupo Mexico (GMEXICOB MM): Mexico's antitrust agency may block Grupo Carso SA, the Mexican industrial group controlled by billionaire Carlos Slim, from selling its railroad to copper producer Grupo Mexico SA, said Eduardo Perez Motta, president of Mexico's Federal Competition Commission yesterday. Grupo Mexico, which operates the Mexican railroad Ferromex, announced on Nov. 25 it agreed to buy Ferrosur SA in exchange
Globalia teams up with Mexico's Grupo Angeles for local airlines bid
Spain's Globalia Corporacion Empresarial has teamed up with Mexico's Grupo Angeles to place a bid for two local airlines, Saturday's La Gaceta de los Negocios reported, citing unnamed sources close to negotiations.
Grupo Angeles, a real estate company, will hold 75 pct of the consortium while Globalia will hold the remaining 25 pct, the newspaper said.
The two airlines on the block are state-owned Mexicana de Aviacion and Aeromexico.
Source: forbes.com
Grupo Mexico official says Asarco strike settlement possible
Officials from Mexican copper mining concern Grupo Mexico SA were meeting with union representatives Friday to try to resolve a three-week-old U.S. strike at the company's Asarco unit, an official said Friday.
In a conference call with analysts to discuss Grupo Mexico's second-quarter results, chief financial officer Eduardo Gonzalez said he believed a solution to the strike was possible.
Friday's meeting was the first between management and the union since more than 1,500 workers went on strike in Arizona and Texas to protest the company's proposed wage freeze and reductions in health and pension
Bradesco, Petrobras, Grupo Mexico, Geo: Latin Equity Preview
Mexico's largest homebuilder by market value is the best performer in the country's benchmark stock index this year to date, with a 66 percent gain. The shares fell 10 centavos, or 0.3 percent, to 36.90 pesos yesterday.
America Movil SA (AMXL MM): Latin America's largest mobile- phone company have gained 63 percent this year, the second-best performance on the Mexican stock index after Geo. The shares fell 3 centavos, or 0.2 percent, to 15.86 pesos yesterday.
Grupo Mexico SA (GMEXICOB MM): Copper, Grupo Mexico's main product, rose to a record 41,970 yuan
Grupo Mexico, Acindar, CPFL, Grendene: Latin Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Grupo Mexico SA (GMEXICOB MM): Asarco LLC, the U.S. mining unit of Grupo Mexico SA, said it will hire hourly employees to replace union workers after talks failed to end a 10-week strike at copper mines and plants in Arizona and Texas. Grupo Mexico shares fell 34 centavos, or 1.8 percent, to 19.01 pesos.
Vitro SA (VITROA MM): Rising international natural gas prices
Mexico's Grupo TMM Sells 18 Mln Kansas City Shares
Grupo TMM SA, Mexico's largest transportation company, said it sold 18 million shares of Kansas City Southern common stock at $22.25 a share, about 10 percent lower than the U.S. railway's closing price yesterday.
Mexico City-based Grupo TMM said in a statement on Business Wire today that it sold the stock to Morgan Stanley and will apply the proceeds toward debt. Kansas City Southern shares fell 32 cents to $24.68 yesterday in New York Stock Exchange composite trading.
Kansas City Southern, based in Kansas City, Missouri, said separately it would offer 9
Televisa, Grupo Mexico, Petrobras: Latin America Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Grupo Televisa SA (TLEVICPO MM): The world's largest producer of Spanish-language television programming said yesterday it hasn't made an agreement with a third party to buy Univision Communications Inc., contrary to media reports. The shares rose 96 centavos, or 2.3 percent, to 42.27 pesos.
Grupo Mexico SA (GMEXICOB MM): Copper rose for a third consecutive session in London yesterday after global inventories of
