Ruben Diaz Assesses Mexican M&A Outlook Following General Election
Foley & Lardner LLP partner Ruben Diaz assessed Mexico’s M&A outlook following the recent electoral gains by the country’s ruling left-wing party, led by President-elect Claudia Sheinbaum, in the Latin Finance article, “Mexico’s M&A dwindles on “supermajority” concerns.”
Diaz suggested Mexico could see a 20% drop in mergers and acquisitions activity this year, given the prospects of the ruling party gaining a congressional supermajority and concerns over potential constitutional changes. “At least in the short term, we expect decline incoming investments,” Diaz said, explaining that Sheinbaum’s victory has done little to improve investors’ appetites for M&A in Mexico.
“The left, which has always been a barrier, is stronger” after the election, Diaz noted, adding that this creates uncertainty, at least in the short term, “because it is assumed that [investment conditions] will be the same or worse.”
“And that is why there is an attitude of, ‘Let’s wait and see what happens,'” he added.
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