MEXICO CITY: Mexican mining and railroad conglomerate Grupo Mexico has struck a deal to merge its electricity generation operations with a BlackRock Inc unit, creating the country’s largest private power operator.
Grupo Mexico’s infrastructure division has signed a definitive agreement to combine its power generation assets with Saavi Energia, part of BlackRock’s Global Infrastructure Partners portfolio, the conglomerate said.
Financial terms of the deal were not disclosed. The merged companies will now own a combined 4.5GW of generation from 14 plants with a pipeline to reach five GW, making it Mexico’s largest private power generator without any government-controlled stake.
Grupo Mexico will control 70% of Saavi, with the remaining 30% staying with Global Infrastructure Partners or GIP.
Some 3.7GW of capacity comes from Saavi’s plants, marking a significant expansion by Grupo Mexico into power generation. About one GW is enough to power one million homes.
Backed by record copper prices, the group – controlled by billionaire German Larrera – held more than US$9bil in cash at the end last year and has said it is looking to boost infrastructure investments after its failed bid to acquire Citigroup Inc’s Mexican retail bank Grupo Financiero Banamex. — Bloomberg
