(Corrects to state that Grupo Mexico has agreed to acquire
FECR, and day of previous story to Monday from Tuesday)
MEXICO CITY, March 28 Mexican miner Grupo Mexico
said on Tuesday it had agreed to acquire Florida
East Coast Railway for $2.1 billion, a rare acquisition that
comes as U.S. President Donald Trump has been trying to
renegotiate trade ties between the two countries.
Trump has threatened to renegotiate the North American Free
Trade Agreement, a treaty that has been a boon to the region's
rail freight operators, which seamlessly shuttle car parts,
grains and beer back and forth across the region's borders.
Grupo Mexico's transport unit financed the purchase from
Fortress Investment Group with $1.75 billion in debt and $350
million in capital, the company said in a statement to the
Mexican stock exchange.
The announcement confirmed a Reuters report on Monday about
the pending acquisition and the company's ambition to manage
foreign assets after dominating the railway freight sector in
Mexico for years.
Florida East Coast Railway "is a unique and irreplaceable
asset with 565 miles of track that offers rail services along
Florida's east coast," the statement said.
The purchase is subject to government approval.
Grupo Mexico, one of the world's largest copper producers,
together with Kansas City Southern de Mexico and Ferrovalle,
control more than 72 percent of the Mexican rail freight market.
Grupo Mexico and Kansas City Southern de Mexico together
have a 75 percent stake in Ferrovalle.
(Reporting by David Alire Garcia; Editing by David Gregorio and
Lisa Von Ahn)