Mexico not willing to cancel Ahmsa's $200mln debt in merger with Villacero

Mexico’s federal government will not cancel a $200 million debt owed to public authorities if Grupo Villacero goes ahead with the acquisition of domestic steelmaker Altos Hornos de México (Ahmsa), Mexican President Andrés Manuel López Obrador said in a press conference on Friday July 17.

This debt refers to the acquisition from Ahmsa in 2013 of fertilizer producer Agro Nitrogenados by state-owned oil company Petróleos Mexicanos (Pemex) for $275 million. An investigation by federal authorities found that the deal was overpriced and calculated that Ahmsa should reimburse $200 million at current value.

The acquisition, and other transactions involving either Ahmsa or Pemex, led to an asset freeze...

Published

Renato Rostás

July 20, 2020

17:55 GMT

São Paulo