Grupo Mexico completes acquisition of Florida East Coast Holdings
Grupo Mexico announced it has completed the acquisition of U.S. rail company Florida East Coast Holdings. The deal first revealed on March 29 closed for US$ 2 billion. To raise funds, the group used two loans, one with Spain-based BBVA and Credit Suisse for US$ 1.55 billion and another from Santander for US$ 250 million, the rest was financed by direct assets from the company.
Before concluding the transaction, Grupo México obtained the authorizations of all regulatory entities in the United States, including the Committee of Foreign Investment, Surface Transportation Board and the Federal Communications Commission.
The purchase brings the company wider presence among the transportation business in the North American region, which already had presence in Mexican territory and in the state of Texas.
Florida East Coast Railway manages tracks on the east coast of Florida where it serves customers in the automotive, chemical, metals and wood sectors, handling around 550,000 cars loaded per year.