May 26, 2004
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
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.