As of 2024, Mexico stands as Latin America’s second-largest economy, boasting a GDP of approximately $1.82 trillion USD and a per capita income nearing $13,966 USD. However, the nation faced economic headwinds in late 2024, with a 0.6% contraction in the fourth quarter, marking its first quarterly decline in over three years. Despite this, the Bank of Mexico maintains a growth forecast of 1.8% for 2024, anticipating a rebound driven by private consumption and investment.
Regulatory Framework: Mexico’s Distinctive M&A Environment
Mexico’s M&A activities are governed by a unique regulatory landscape that distinguishes it from other countries. The Federal Economic Competition Commission (COFECE) oversees antitrust matters, ensuring fair competition. Notably, Mexico’s regulations require mandatory notification for certain mergers, even if the parties involved are foreign entities with significant operations in Mexico. This extraterritorial reach is more expansive than in some jurisdictions, reflecting Mexico’s commitment to monitoring transactions that could impact its domestic market.
Additionally, sectors like energy and telecommunications are subject to specific regulations, often necessitating additional approvals. These sector-specific rules can introduce complexities not commonly found in other countries, requiring thorough due diligence and strategic planning for successful deal execution.
M&A Activity: Historical Trends and Underlying Drivers
Historically, Mexico has been a vibrant hub for M&A activities, driven by factors such as market liberalization, privatization efforts, and its strategic location as a gateway between North and South America. The country’s robust manufacturing sector, particularly in automotive and electronics, has attracted significant foreign investment.
In recent years, M&A activity has been influenced by global economic shifts, trade agreements like the USMCA, and domestic reforms. While the number of deals saw a decline in 2023, with 366 transactions recorded—a decrease from previous years—the total value of deals remained substantial, underscoring continued investor interest.
Major M&A Deals in Mexico
Here is a list of some of the most significant M&A transactions in Mexico up to 2024:
- Anheuser-Busch InBev’s acquisition of Grupo Modelo – $20.1 billion (2013)
- AT&T’s acquisition of Iusacell and Nextel Mexico – $4.4 billion combined (2015)
- Televisa’s merger with Univision – $4.8 billion (2021)
- FEMSA’s acquisition of Valora – $1.2 billion (2022)
- Grupo Bimbo’s acquisition of Canada Bread – $1.66 billion (2014)
- Cemex’s acquisition of Rinker Group – $14.2 billion (2007)
- América Móvil’s acquisition of Telmex – $21 billion (2000)
- Grupo Aeroportuario del Pacífico’s acquisition of MBJ Airports Limited – $191 million (2015)
- Alpek’s acquisition of Petroquímica Suape and Citepe – $385 million (2017)
- Grupo Lala’s acquisition of Vigor Alimentos – $1.84 billion (2017)
- Sigma Alimentos’ acquisition of Campofrío Food Group – $1.1 billion (2014)
- Grupo Carso’s acquisition of Ideal – $1.8 billion (2021)
- Fibra Uno’s acquisition of Torre Mayor – $655 million (2013)
- Grupo México’s acquisition of Florida East Coast Railway – $2.1 billion (2017)
- Banorte’s acquisition of Interacciones – $1.4 billion (2018)
Recent Developments: M&A Activities in 2024/2025
In 2024 and early 2025, Mexico’s M&A landscape has been shaped by both challenges and opportunities. Economic uncertainties, including potential U.S. tariffs and domestic reforms, have introduced caution among investors.
Despite this, sectors such as technology, renewable energy, and logistics have seen continued interest.
Notable recent deals include:
- Grupo Bimbo’s acquisition of a U.S.-based organic bakery – $500 million (2024)
- Cemex’s divestiture of certain European assets to focus on Latin American operations – $1 billion (2024)
- América Móvil’s investment in 5G infrastructure through a joint venture – $1.5 billion (2025)
These transactions reflect strategic shifts towards core competencies and growth areas, even amid broader economic headwinds.
Divestitures: Strategic Realignments and Outcomes
Divestitures have played a pivotal role in Mexico’s corporate strategies, often serving as a means to streamline operations and focus on core business areas. For instance, Cemex’s sale of non-core assets has allowed the company to reduce debt and invest in more profitable markets.
While some divestitures have been successful in enhancing operational efficiency and shareholder value, others have faced challenges. Factors such as regulatory hurdles, market reception, and execution risks have influenced the outcomes of these strategic moves.
Strategic Insights: Successes and Lessons Learned
M&A deals that flourished in Mexico have typically had three pillars of success:
- Regulatory Foresight – Companies that proactively engaged with regulators like COFECE early in the process saw smoother approvals. An example is AT&T’s acquisition of Iusacell and Nextel Mexico, which was carefully structured to comply with telecom regulations while strategically expanding AT&T’s Latin American footprint.
- Local Market Knowledge – Domestic players like Grupo Bimbo and FEMSA have consistently executed successful acquisitions because of their deep understanding of local consumer behavior and distribution networks. For instance, Bimbo’s acquisition of Canada Bread was not just about market expansion—it was a move to vertically integrate production and distribution, improving margins over time.
- Post-Merger Integration (PMI) – Transactions such as América Móvil’s purchase of Telmex succeeded largely due to robust integration plans. Companies that failed to prioritize cultural and operational integration (especially in cross-border M&As) often saw value erosion.
On the flip side, deals that underperformed or were reversed typically failed in one or more of the following areas:
- Poor Cultural Fit – Differences in corporate culture between foreign acquirers and local firms have derailed integrations.
- Overestimation of Synergies – Some companies projected overly optimistic cost savings or revenue enhancements.
- Political and Regulatory Risks – Changes in government or legislation have delayed or even blocked deals, particularly in strategic sectors like energy and mining.
Industry Trends Driving M&A in Mexico
Several macro trends continue to drive deal activity in the country:
- Nearshoring: Mexico’s proximity to the U.S. and shifts in global supply chains (especially post-COVID) have sparked interest in manufacturing and logistics-related M&A.
- Digital Transformation: Fintech, e-commerce, and telecommunications companies are actively consolidating to gain competitive edges and scale.
- Energy Transition: With global momentum behind decarbonization, renewable energy firms have targeted Mexico’s solar and wind sectors, although regulatory uncertainty in energy remains a concern.
- Private Equity Activity: Despite regulatory headwinds, PE firms continue to see opportunities, particularly in healthcare, food and beverage, and tech.
Outlook for 2025 and Beyond
Looking ahead, Mexico’s M&A landscape appears cautiously optimistic:
- Election Cycle Considerations: With the 2024 general elections concluded, political clarity could reignite investor confidence. However, any significant policy shifts from the new administration could either accelerate or delay deals.
- Cross-Border Activity: With strong ties to the U.S. and Canada through USMCA, we expect a rise in cross-border M&A, especially in sectors like AI, clean tech, and advanced manufacturing.
- Infrastructure and Public-Private Partnerships: Major infrastructure projects, such as the Tren Maya and airport developments, may spur JV and investment opportunities.
The most important consideration for dealmakers? Flexibility and agility. In a market like Mexico—where political winds can shift quickly and sector-specific regulations evolve—those who plan with a long-term, adaptive mindset stand the best chance of sustained value creation.
Final Thoughts
Mergers and acquisitions in Mexico represent both a challenge and an opportunity. With a growing middle class, proximity to key markets, and a dynamic industrial base, Mexico offers fertile ground for strategic investment. However, success depends on understanding local nuances—regulatory, cultural, and economic.
From mega-deals like the Grupo Modelo acquisition to the growing trend of divestitures and digital consolidation, the M&A landscape in Mexico continues to evolve. For investors and companies willing to engage thoughtfully, the potential remains high.