Grupo Mexico Seals A Deal To Buy $2.1 Billion Worth Of Florida East Coast Railway: Conglomerate Hopes For US Government Approval
Amidst the changing decisions of the new administration of US over its trading policies in Latin America, Grupo Mexico has made a deal with Fortress Investment Group to acquire 100 percent of its stocks. Making Grupo Mexico as the owner of Florida East Coast Railway as it pays it off with $2.1 billion, paying $1.75 billion in debt and $350 million in capital. Grupo Mexico (GMEXICOB.MX) holds the largest mining industry in Mexico with Ferromex as its rail transport division targets investments outside Mexico.
In a recent report from Reuters, Grupo Mexico makes a deal to get Florida East Coast Railway on Monday with a hopeful approval from the US government. Grupo Mexico was attracted with 565 miles of track that offers rail services along Florida's east coast and will connect the line to its Texas operations. Furthermore, it will expand its transportation services to North America and will help in the improvement of their services which covers a bigger area.
Grupo Mexico is not only into railways and transportation, but it is the third largest producer of copper all over the world. It can and it will provide nonstop railway services and it is said to be the cheapest railway operator in Latin America as per reports from Financial Times. Nevertheless, it still maintains an income of increased 20 percent with $930 million on a proforma basis as compared to last year's $775 million despite depreciation and amortization worth.
To date, Grupo Mexico's Ferromex has 10,000 track-km in Mexico, serving major industrial and commercial zones as well as eight seaports and six border crossings. With the combination of tracks and wagonloads, Grupo Mexico's collaboration with Florida East Coast Railway will provide faster transport services which can connect to 70 per cent of the US in 1-4 days and operates some 500,000 diverse cargo loads in all aspects.