Mexican conglomerate Femsa said on Thursday it had signed a non-binding agreement to acquire a minority stake in U.S. cash-and-carry retailer Jetro Restaurant Depot, adding to recent investments by Mexican firms abroad.
Investment in Mexico has been unsettled by President Andres Manuel Lopez Obrador, who took office pledging to ramp up growth. But he has rattled markets with decisions that have undermined confidence in his stewardship of the economy.
Monterrey-based Femsa said the investment foreseen under the memorandum of understanding (MOU) with Jetro was worth $750 million, and fitted with its strategy of putting money into businesses that can leverage its potential in other markets.
“The transaction allows FEMSA to gain exposure to the U.S. wholesale cash and carry segment by investing with a formidable partner,” Femsa said, adding it expected to sign definitive agreements to formalize the MOU in October.
A few weeks before taking office, Lopez Obrador sparked a major sell-off of Mexican financial assets when he abruptly canceled a new, partly -built $13 billion Mexico City airport, arguing it was tainted by corruption and geologically unsound.
He has also called into question other projects agreed under the previous government, including several natural gas pipeline contracts that he said were unfair to Mexico. That led to a renegotiation he said would save Mexico $4.5 billion.
His criticism of the previous government’s opening of the oil and gas sector to private capital has also raised concern about his desire to encourage business.
