09-17-04.
KCS’s proposal to take control of TFM Mexico’s biggest railroad,from grupo TMM was rejected by Mexico’s foreign investment,the companies said thursday in a joint statement.
The decision blocks KCS from adding to it’s 37% stake in TFM by buying Grupo TMM’s 43% holding. KCS & TMM,Mexico’s biggest transport company,will ask the regulator to reconsider the deal,worth $412 million when it was announced in April 2003.
–BLOOMBERG NEWS.
Even Mexico understands that mergers end up being a walk through a barn filled with sharp farming implaments during a tornado. (now that’s descriptive)
That just screws up KCS’s plans now doesn’t it,[(-D].
I saw that and thought it was very funny.
I just wonder what the RR’s gona do now.
That’s simple. Use a little mordida, and appeal. I can’t comment further until I actually see what the grounds for the denial were stated to be. But I suspect it’s details, not the principle of the transaction…
OUCH!
Take a look at the UP’s Board of Directors.
KCS or NAFTA (whatever they want to call themselves) should work with what they have now and learn from the mistakes of UP with SP and BN with GN.
“those who do not learn from history are doomed to repeat it”
What’s the link?(UP)!
Does anyone else see a pattern here?
Canadian roads buy US roads and US roads buy Mexican roads.
UP has no link here since they already have a minority interest in Ferromex. The rejection of the deal may have more to do with Mexican politics and nationalism since Grupo TMM is controlled by an influential Mexican family.
The UP has been interested in better access to Mexico for many years. Just because they may have lost round one does not mean the fight is over.
I wonder if that means that Mexican roads will buy Centreal American roads.[:D]