Mexican conglomerate Alfa now considers its investment in Pacific Exploration & Production a total loss after the Canadian hydrocarbons producer reached a restructuring deal with a private fund.
Investments in certain fields no longer make sense with oil trading at US$35 a barrel, said Armando Garza, the company's president.
Alfa, which is merging Axtel with its Alestra unit, will own 51 percent of the new company once new shares are issued.
Los títulos de Alfa bajan 0.7% a un precio de 33.9 pesos, mientras que los de Axtel escalaban un 2.76% a 8.18 pesos
Anuncian ambas firmas un acuerdo de entendimiento para realizar la operación
Axtel would remain independently traded, and would issue new stock to leave Alfa 51 percent of the new company.
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With economic growth running at only slightly above 2%, business leaders have mainly held back from passing the increased costs of imported goods and materials on to consumers, but some now say they cannot continue to bear the full burden.
Tuesday's IPO priced the shares at US$1.2 each. Some of the funds raised could be used to finance Alfa's purchase of Canadian oil firm Pacific Rubiales.
Conglomerate Alfa said the transaction would enable it, along with Sigma Alimentos SA de CV, to control 100 percent of the shares in Campofrio.