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Mexico Attracts Investors

Admin | 06.08.2013

The structural reforms being undertaken in Mexico, the market found here and the country’s connections to other economies provide it with opportunities for long term investment, according to Temasek Group.

The structural reforms being undertaken in Mexico, the market found here and the country’s connections to other economies provide it with opportunities for long term investment, according to Temasek Group.

“We are an investor committed to the long run, whenever a period of reforms emerges, like it is happening in Mexico, it may be that opportunities will arise soon, but the benefits are for the medium or long term”, Stephen Forshaw, Corporate Affairs General Director, explained.

The outlook for Temasek Group, a corporation specialized on investing in the private enterprise, is that in coming years local investment will double and it will add to the portfolio they already have with operations such as Banco del Bajio, Oro Negro, Pangea, and more recently Banorte, where they purchased a significant portion of the last shares issued by this bank.

“Our ability is focusing on businesses where capital remains for some time and overcomes volatility periods, we are looking for successful investments, but to do this we have to be in a very long term horizon”, Forshaw pointed-out.

Temasek Grop was founded in the seventies at Singapore and they came to Mexico in mid 2008, formally starting operations in 2009, right amidst the big international financial crisis, and even if the global investments outlook seemed paralyzed, it was precisely at that time when they started building their portfolio.

Mexico is considered one of the most promising markets in Latin America, and this year the outlook improves due to investment opportunities to be found after reforms are implemented on energy matters.

“For example, Pemex requires a series of capital investments, which it lacks and they will need companies that provide it, and it is right there where we will be waiting for an opportunity”, Loreno Gonzalez, Investments Director, Mexico Office, said.

Another sector where Temasek sees great potential to invest is the financial sector, especially in the direct consumption area, since this is the group with the fastest growth due to consumers’ demands.

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