The Antitrust Review of the Americas 2009

Mexico: Merger Control

01 January 2009

Notifiable transactions What is commonly known in the antitrust legislation of some countries as 'mergers and acquisitions' are known as 'concentrations' under the Mexican antitrust statute. Article 16 of the Federal Economic Competition Law (the Law) defines a 'concentration' as 'the merger, acquisition of control, or any other action between or among competitors, suppliers, customers or other economic agents to consolidate corporations, associations, stock holdings, partnership interests, trusts, or assets in general'. The Law further mentions that the Federal Competition Commission (the Commission) 'shall oppose and penalise any concentration having the purpose or effect of restraining, injuring or preventing the free and open competition in the market of equal, similar or substantially comparable products and services'. In order to be in a position to analyse which transactions may have these effects, article 20 of the Law establishes the following economic thresholds, which, if exceeded, notice of the transaction must be given: when one or a series of transactions gives rise to a concentration, regardless of where the transactions take place, whose value in Mexico, directly or indirectly, exceeds an amount equivalent to 18 million times the general minimum wage in effect for the Federal District (946.620 million Mexican pesos, approximately US$91 million); when one or a series of transactions gives rise to a concentration that results in the accumulation of 35 per cent or more of the assets or capital of an economic agent, whose annual assets or sales in Mexico exceed the equivalent of 18 million times the general minimum wage in effect for the Federal District (see above); and when one or a series of transactions gives rise to a concentration that results in the accumulation in Mexico of assets or share capital equivalent to 8.4 million times the general minimum wage in effect for the Federal District (441.756 million pesos, approximately US$42.5 million) and two or more economic agents whose assets or annual sales volume, together or separately, are greater than 48 million times the general minimum wage in effect for the Federal District (2.52 billion pesos, approximately US$243 million) take part in the concentration.

Interested in becoming a GCR author? Please contact our Insight Manager.

Get in touch