FIRMS OPEN THEIR DOORS TO EMPLOYMENT INCLUSION (EL NORTE 0)

Around 90 companies, organizations and universities taking part in the Congruence Movement from Monterrey provide 2,800 equal-opportunities jobs to people with disabilities. This program, which emerged 10 years ago and is led by Cemex and Amrop, also boasts the participation of Pepsico, Arca, Femsa, Gruma, Xignux, Proeza, Amrop, the Monterrey Institute of Technology, Caintra Nuevo Leon, and many other companies.

SALE OF GRUMA BUSINESS AUTHORIZED (EXCÉLSIOR 1-3) (REFORMA 3) (EL FINANCIERO 34) (EL ECONOMISTA 20) (LA JORNADA 25) (MILENIO DIARIO 31)

The Federal Economic Competition Commission (Cofece) has authorized the sale of Gruma’s wheat operations in Mexico in a transaction valued at US$200 million, which the firm will use to strengthen its finances. “The final confirmation of the deal and the transfer of funds is estimated to go through no later than December 2014”, the company stated in a memo sent to the Mexican Stock Exchange. Gruma outlined that “this transaction is in line with our company’s strategy of focusing on our key business”. Grupo Trimex will acquire the entirety of shares in Molinera de México (including the transfer of staff and assets) and the wheat flour production assets of Agroinsa, a subsidiary of Grupo Industrial Maseca, the company has stated.

ACTION AND REACTION (EL ECONOMISTA 2)

Wheat business sold. Gruma continues its growth and has now decided to sell its wheat flour business in Mexico. This transaction allows the company led by Juan Antonio González Moreno to strengthen its financial structure so that it can concentrate on its key business, in particular corn flour manufacturing.

ALBERTO BARRANCO / BUSINESS. (EL UNIVERSAL 4)

Maseca just corn. The Federal Antitrust Commission has given the green light toGrupo Masecato sell its Molinera de México division, the last bastion of its wheat flour business. The company is going back to its roots as it concentrates on the production of nixtamalized corn flour and its various derivatives...

IRASEMA ANDRÉS DAGNINI / GOOD ACCOUNTS. (LA RAZÓN 24)

Gruma will bolster its financial structure and that of Maseca following the sale of Molinera de México to Grupo Trimex for approximately US$200 million. The Federal Antitrust Commission has approved the transaction, which enables Trimex to acquire the entirety of shares in Molinera de México (including the transfer of staff and assets), as well as the wheat flour production assets of Agroinsa, a subsidiary of Grupo Industrial Maseca.

AN EXAMPLE TO FOLLOW (EL UNIVERSAL 6-7)

We are presently seeing big businesses or brands become a synonym for quality, responsibility and pride for Mexicans and foreigners alike, but building up a company based on an innovative idea is no easy task... In Mexico, there are also great individuals behind companies like Bimbo, Liverpool, Banorte, Jumex and ALFA, to name just a few of the firms ranked among the best in the world, according to distinguished publications such as Forbes and Fortune. Among those most valuable brands, Maseca comes in at number 25.

IQ FINANCIERO / THE SUCCESSION OF GONZÁLEZ BARRERA AT BANORTE. (EL HORIZONTE ONLINE 0)

Accompanied by the President ofGrupo Maseca, Juan Antonio González Moreno, Carlos Hank González Moreno, a member of the Board of Directors of Grupo Financiero Banorte, arrived early yesterday at the beginning of the plenary board meeting of the bank founded by his grandfatherRoberto González Barrera.

Juan Antonio González Moreno is also on the Board of Directors at Grupo Financiero Banorte, which continues to be chaired by Guillermo Ortiz Martínez, former Governor of the Bank of Mexico and former Minister of Finance and Public Credit.

FITCH RATINGS BOOSTS GRUMA’S CREDIT RATING (EL SOL DE MÉXICO 2) (EL PORVENIR 0) (EL NORTE 0)

Fitch Ratings has boosted the credit rating ofGruma, one of the world’s leading corn flour and tortilla manufacturers, to a stable outlook following the company’s commitment to enhancing its capital structure. The international ratings agency announced that it has raisedGruma’s international foreign currency Issuer Default Rating (IDR) from BB+ to BBB-, its international local currency IDR from BB+ to BBB-, and its US$300 million issuance of senior secured notes from BB+ to BBB-. “The increase inGruma’s rating reflects its commitment to its capital structure, which can be seen in the reduction of its total debt, lower levels of leverage, greater profitability and strong free cash flow (FCF) generation,” it was explained.

FITCH BOOSTS GRUMA’S RATINGS DUE TO GREATER PROFITABILITY (LA CRÓNICA DE HOY 24) (LA JORNADA 29) (EL FINANCIERO 36) (MILENIO NOTICIAS TV (4 p.m. to 8 p.m.))

Following Gruma’s commitment to improving its capital structure, as reflected in the reduction of its total debt, lower levels of leverage, greater profitability and strong free cash flow (FCF) generation, Fitch has raised its international foreign currency Issuer Default Rating (IDR) rating for Gruma from “BB+” to “BBB-”; its international local currency IDR from “BB+” to “BBB-”, and its US$300 million issuance of senior secured notes from “BB+” to “BBB-”. The ratings are based on the strong business position of Gruma, one of the world’s leading corn flour and tortilla manufacturers operating in the United States, Mexico, Central America, Europe, Asia and Oceania.

INVESTMENTS. (MILENIO DIARIO 34)

Gruma’s directorsare delighted following the company’s credit upgrade by Fitch Ratings from BB+ to BBB-. The ratings agency took into account its new capital structure, which has managed to reduce its total debt with lower levels of leverage, greater profitability and strong free cash flow generation. Fitch believes thatGruma will manage to uphold its business position in the long term, underpinned by its brand strength, product diversification, distribution channels, own technology and extensive geographic coverage.

MAURICIO FLORES/PEOPLE BEHIND THE MONEY (LA RAZÓN 22)

Gruma, the star. The flour company led by Juan González, has had its credit rating improved by Fitch from BB+ to BBB- as a result of its effective management of its production, cash flow and liquidity structure, as well as its commitment to strengthening its levels of capital and hemming in debt. In fact the ratings agency predicts that Gruma will use the US$200 million obtained from the sale of its flour company Trimex to reduce its liabilities. Don Maseco would be proud.

FITCH UPGRADES GRUMA’S CREDIT RATING (MILENIO NOTICIAS (11:00 a.m. to 12:00 p.m.))

Claudia Ovalle: Fitch Ratings has upgraded Gruma’s credit rating due to its belief that the company will manage to uphold its business position in the long term, underpinned by the strength of its brands, product diversification, distribution channels, own technology and extensive geographic coverage. The multinational’s credit rating was upgraded from BB+ to BBB- with a stable outlook. Gruma is one of the world’s leading corn flour and tortilla manufacturers, operating in the United States, Mexico, Central America, Europe, Asia and Oceania.

THE SLICE OF THE CAKE IN 2014 (EL ECONOMISTA pp-1-8)

Following the passing of the energy reform, sectors such as steel, construction and the industrial sector have refocused their resources to take part in energy generation projects. This year’s most dynamic companies in terms of dividend payments are fiber companies, which are not governed by the same framework of tax on dividends... On the other hand, some of the leading companies on the Mexican Stock Exchange have paid out sums in November of this year.Grumapaid out MXN 649.1 million, equivalent to 1.50 pesos per share.

GRUMA TO ISSUE US$400 MILLION OF DEBT (EL HORIZONTE ONLINE 0)

Gruma plans to issue US$400 million of debt in order to refinance its existing liabilities, which includes a senior secured note. The secured notes proposed for issue by the company are due to expire in 2024, according to Standard & Poor’s, which granted the transaction a “BB+” rating.

HINTS AND TRENDS (EL ECONOMISTA 7) GRUMA. Fitch Ratings rated the corn flour processing company as stable with a “BBB-” rating, after considering its liquidity, profitability, geographic diversity and debt reduction to be in line with its guidelines.

POPOL VUH REVISITED. (AMÉRICAECONOMÍA 8) Juan Antonio González has transformed the Mexican firm Gruma into a global leader in corn flour and tortilla production. Its shares returned the highest yield on the Mexican Stock Exchange (BMV) in 2013. 

IN 2014, GRUMA AND IENOVA ARE THE WINNERS ON THE STOCK EXCHANGE; ALPEK AND ICA ARE THE BIG LOSERS. (EL UNIVERSAL 6) Just weeks before 2014 came to an end, ten corporations listed on the Mexican Stock Exchange saw their share prices climb the highest. According to stock market data, Gruma, IEnova, GAP, Elektra, Televisa, Grupo Carso, Pinfra, ASUR, Cemex and Arca Continental, saw their shares perform better than other issuers, whereas the big losers were Alpek, ICA, Industrias CH, Genomma Lab, Banorte, Kimberly Clark, Santander, Walmart, Lala and KOF. Of the companies that make up the BMV Price and Quotations Index (IPC), Ienova, which operates in the energy sector, andMaseca, the leading tortilla producer, stood out with share price increases of more than 50%. Analysts attribute the performance of Gruma, led by Juan González Moreno, to a fall in international corn and wheat prices, and the growth of the foreign markets where they operate. 

TENDENCIES AND TRENDS. (EL ECONOMISTA 7) Gruma. The firm has announced that the Federal Antitrust Commission authorized the sale of its wheat operations in Mexico as part of a transaction valued at US$200 million. The firm will use these resources to strengthen its financial position.  

STOCK MARKET RISES AND FALLS/WINNERS (FORBES MÉXICO 24) Juan Antonio González Moreno +3.57%. Market value ofGrumaMXN 64.71 billion. Juan Antonio González Moreno has pursued a cost reduction policy by focusing on the markets where the company operates, thus enabling it to maintain its preference by investors. 

COFECE SETTLES AND AUTHORIZES COMPANY ACQUISITIONS (EL UNIVERSAL 7) (EL PORVENIR 0) In separate rulings, tortilla producer Gruma, steel company Altos Hornos de México (AHMSA) and cement firm Elementia were authorized by the Federal Antitrust Commission (Cofece) to complete purchases and sales transactions. Following the decision by Cofece, Gruma wasauthorized to sell Molinera de México to Trimex and Harinera Seis Hermanos. However, the anti-monopoly body has ruled that the non-competition clauses included in the contracts will have no market effects. In June, Gruma announced that it had reached agreement with the Trimex group to sell its wheat flour operations for approximately US$200 million. The agreement includes the sale of shares and assets for Agroinsa wheat flour production.