Mexico: COFECE reduces fine on ALSEA group

Mexico’s Federal Commission of Economic Competition (COFECE) has reduced the fine imposed on fashion company Grupo Axo, as well as the restaurant operator Grupo Alsea, after the companies failed to notify the merger between them which took place in 2013.

The reduction has been quite considerable, from the $25.694 billion pesos (USD$1.335 billion) for Alsea to $ 4.6 million (USD$239,000), while for Axo the figure was reduced from 2,982 million pesos (USD $ 154 million). ) at only $ 596,462 pesos (USD $ 31,000 approximately).

According to the regulator, the Federal Competition Law in force at the time of the transaction established that mergers should be notified to the Commission whenever two or more economic agents whose assets or sales volume account for more than 48 million times the current minimum wage are participants.