The Federal Economic Competition Commission (Cofece) of Mexico approved the merger between China Communications Construction Company (CCCC) and Mota-Engil
The notified operation consists of the acquisition by CCCC a part of the total issued and outstanding shares of Mota-Engil.
CCCC, which is the fourth largest construction company in the world, announced on November 27 the acquisition of 23% of the capital of Mota-Engil for 169.4 million euros.
Thus, with the agreement between CCCC and Mota Gestão e Participações, the holding company of the Mota family will reduce its position of control in the Portuguese construction company.
From the analysis carried out by Cofece, it is considered that, if the notified operation were carried out, it would have little probability of affecting the process of free competition and economic competition in Mexico.
Initially, on March 8, 2021, CCCC and Mota-Engil notified Cofece of their intention to carry out a concentration, in accordance with the provisions of article 90 of the Federal Economic Competition Law (LFCE).
On November 27, 2020, Mota-Engil publicly announced that it had concluded an investment agreement with CCCC, the essential aspects of which had already been disclosed to the market through the statement issued on August 27, 2020.
Likewise, the Portuguese company highlighted in its 2020 report the growth of the order book by approximately 687 million euros compared to December 31, 2019, mainly due, among others, to the Mexican market, with the award, in association with CCCC, of a contract for the construction of the first phase of the new railway infrastructure called Mayan Train in Mexico, valued at more than 500 million euros.
The Cofece is in charge of the prevention of concentrations whose object or effect is to diminish, damage or impede competition and free competition.
Cofece is also empowered to challenge and sanction those concentrations and legal acts derived from them, the object or effect of which is to reduce, damage or impede competition and free competition, in the production, distribution and commercialization of goods and services in the Mexican Republic. .
Therefore, it may authorize concentrations that are not contrary to the process of competition and free competition in terms of the LFCE.