Delayed, But Not Deterred
Grupo México has pulled back from the brink of disaster, after its ill-fated US acquisition. But it is still staggering under a heavy debt burden.
Grupo México's ill-timed, debt-financed acquisition
of troubled US copper mining company Asarco in 1999 brought the
Mexican mining and transportation conglomerate to the brink of
disaster, forcing it into a financial restructuring that lasted
years. Now, as a final step to reordering its finances, Grupo
México has set its sights on merging two of its main
subsidiaries, Southern Peru Copper Corp. and Minera
México into single group. If all goes well, and copper
prices remain strong, Grupo México could soon be back on
its feet. Company executives say their strategy of turning the
group into a multinational corporation with mines in the US and
Peru as well as Mexico, has been vindicated. The merger would
make Americas Mining Corporation (AMC), the holding company for
Grupo México's US, Peru and Mexcio operations, the
world's second-largest copper producer. But Grupo México
still must win over investors alienated by a long...
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