The Federal Economic Competition Commission (Cofece) of Mexico approved the merger between WPP Bullet and Palmex Alimentos, along with other participating companies.
According to its own description, Palmex Alimentos is the main supplier of pellets for snacks in Mexico, the United States and Latin America and a growing supplier in the cereal segment.
First of all, on October 28, 2021, WPP Bullet Buyer (WPP Bullet\WPP Bullet Holdings, LLC (WPP Holdings), Palmex Alimentos; Palmex I LID. (Palmex I); Azor Industrias; Empresas CUSA; Promotora Industrial del Nazas ( PINSA); Sunbelt RRJ Holding; and Restan Partners notified Cofece of their intention to hold a merger.
Palmex Alimentos
Thus, the request was made in accordance with the provisions of article 90 of the Federal Economic Competition Law (LFCE), through the Electronic Procedures System of the Federal Economic Competition Commission (SITEC).
The notified operation consists of the acquisition by WPP Bullet of certain shares of the capital stock of Palmex Alimentos, owned by PINSA, Azor; and Empresas CUSA, as well as the acquisition by WPP Bullet of certain outstanding shares representing the capital stock of Palmex I, owned by Sunbelt and Reston.
Cofece
Between October and December 2021, the Commission analyzed 86 concentrations, of which 48 were authorized, two had administrative closure and 36 are still in process. The total value of the completed operations was greater than 1 billion pesos.
From Cofece’s perspective, the world environment faces a scenario in which the economic effects of the current pandemic are evident.
According to the Organization for Economic Cooperation and Development (OECD), the application of competition regulations during and after the crisis caused by the pandemic is crucial to ensure that markets function correctly in the short term.
In this context, the work of Cofece is fundamental in the prevention and correction of market structures that hinder competition, as well as in the promotion of the principles in this matter.
Therefore, the work of Cofece is fundamental in this context, since having competitive markets generates lower prices, higher quality goods and services and more alternatives for consumers, in addition to promoting innovation.
With respect to the Investigative Authority, article 26 of the Federal Economic Competition Law (LFCE) establishes its technical and managerial autonomy to decide on its operation and resolutions.
The foregoing in order to comply with article 28, paragraph twenty, section V of the Political Constitution of the United Mexican States, which establishes that there must be a separation between the authority that investigates and the one that resolves.
