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Mexico

Regardless of where it takes place, a merger or acquisition that affects a Mexican market may be subject to a notice requirement before it has legal or material effect in Mexico. The Federal Competition Commission (CFC) regulates mergers and acquisitions as concentrations under the 1993 Federal Economic Competition Law and its recently adopted regulations.

In general, the acquiring party must give prior notice to the CFC of a concentration that exceeds the statutory threshold in amount, asset value, or annual sales volume.

Foreign transactions are exempted from the notice requirement, if they are legal acts affecting interests in foreign companies, and the parties involved are not acquiring control in Mexican companies or accumulating within Mexico interests or assets in addition to those they already own, directly or indirectly.

The CFC will oppose, penalize, or place conditions on a concentration, if it represents a substantial threat to competition in a market, based on the evidence offered on:

  • the relevant market;
  • the actors in that market, their power in that market, and the degree of concentration in that market; or
  • additional criteria, including countervailing gains in efficiency; direct or indirect share participation of the actors and competitors in the market or related markets; and the effects on the relevant market with respect to other competitors and purchasers of the goods or services.

Alberto de la Parra Z and Ana María Poblanno C

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