Mexico's Antitrust Commission Confirms Fines Against Rail Cos
June 24 2009 - 4:18PM
Dow Jones News
Mexico's antitrust watchdog said Wednesday it confirmed fines
for 419.1 million pesos ($31.5 million) against the Ferromex and
Ferrosur railway companies for price fixing.
The Federal Competition Commission, or CFC, said the fines are
against the two railway concerns and the companies that own them -
copper miner Grupo Mexico (GMEXICO.MX), conglomerate Grupo Carso
(GPOVY) and a unit of Grupo Financiero Inbursa (GFINBUR.MX).
The fines followed an unauthorized 2005 merger of Ferromex and
Ferrosur, which operate two of the country's three privatized
railways. The other railway is run by the local unit of Kansas City
Southern (KSU), which has opposed the merger.
The CFC said that since it hasn't authorized the merger, from a
legal standpoint Ferrosur and Ferromex continue to be competitors
and are therefore "subject to competition laws as independent
companies."
A spokesman for Ferromex said the companies involved plan to
contest the fines in court.
Under the merger of the two railways, Carso and Inbursa sold
Ferrosur to Grupo Mexico for a 25% stake in Grupo Mexico's
transport unit ITM, which includes both railways.
The dispute over the merger is also being fought in court.
-By Anthony Harrup, Dow Jones Newswires; (5255) 5001 5727;
anthony.harrup@dowjones.com