The Federal Economic Competition Commission (Cofece) of Mexico prevents the creation of market structures that represent risks to competition and free market access through the analysis of concentrations between economic agents.

Once these operations are analyzed, the Board of Cofece can authorize them, subject them to the fulfillment of conditions or object to them when they generate risks to competition.

In accordance with article 86 sections I, II and III of the Federal Law on Economic Competition (LFCE), concentrations must be notified to the Commission when they exceed any of the following thresholds: when the transaction in the national territory is greater than the equivalent of 18 million times the Measurement and Updating Unit (UMA) equivalent to 1,563 million 840,000 pesos.

When the transaction implies the accumulation of 35% or more of the assets or shares of an Economic Agent, whose annual sales or assets in national territory are greater than the equivalent of 18 million times the UMA.

Or, when the transaction represents an accumulation of assets or social capital in the national territory greater than 8.4 million times the UMA (equivalent to 729 million 792,000 pesos), and that the annual sales or assets of the economic agents participating in the transaction operation are greater than 48 million times the UMA (which represents 4,170 million 240,000 pesos).

Cofece

The monetary thresholds contained in article 86 of the Law must be analyzed one by one.

It is enough that the act, succession of acts or the operation update any of the three sections of the aforementioned article so that the Economic Agents involved are obliged to notify Cofece of their intention to carry out the concentration.

If it is determined that the operation updates any fraction, the analysis of the other fractions is no longer necessary.

Likewise, in accordance with the provisions of the last paragraph of the aforementioned article, any concentration that does not meet any of the assumptions previously described, may be voluntarily notified to the Commission.

In this case, if the Commission objects or conditions the operation, the notifiers will be obliged to comply with and observe the resolution.