Investors from Mexico are bombarding Spain, because overseas several groups have cash to spend and think that now is the time to seek opportunity on the Old Continent in a country that shares their language and culture, but offers more mature markets and business opportunitites in Spain and the chance for collaboration back in Central America.
Mexican President Enrique Peña Nieto is also joining the effort. He will visit Spain in several weeks with the intention of signing key trade agreements. Already, the recent influx of Mexican investors is being felt. They have bought interests in Sabadell and Banco Popular, and yesterday it was made known that the Mexican firms Imosan and Davinci will join the Asturian firm Masaveu to buy 12% of Liberbank. But the buying goes beyond the financial sector. The Mexican company Sigma has purchased 46.8% of Campofrío and the state-operated oil company Pemex has supercharged Spain's Barreras by pumping in money and jobs.
Mexican investors will continue to focus on Spain, because companies in both countries have much to offer each other. Pemex aims to forge an alliance with Repsol, because Mexico's state-operated oil company wants to leverage Repsol technological expertise in order to expand its operations in Central America.
Ultimately, all these deals need to be commercial in nature. Because the Mexican people have experienced the "tequila effect," they know better than others that a country can bounce back after an economic downturn. This time, Mexico will fuel Spain's recovery and reap its own rewards at the same time.
