Tulum Beach, Riviera Maya

Grupo Mexico to partner with GAP for airport bid

Grupo Mexico to partner with GAP for airport bid

Tulum Real Estate Information

MEXICO CITY Oct 29 (Reuters) – Miner and railroad company Grupo Mexico said on Friday it will partner with airport operator GAP to bid for a new airport in Mexico’s Caribbean in an effort to expand its infrastructure business.

Mexico has said it will begin to accept bids in mid-November for the new international airport on the tourist strip near Cancun known as the Riviera Maya. [ID:nN11273302]

“We are participating with them as partners in the bid for the Riviera Maya airport. GAP, or Grupo Aeroportuario del Pacifico, which owns the majority of the consortium that we are putting together for that project,” Grupo Mexico Chief Executive Daniel Muniz told an investor conference call.

Grupo Mexico (GMEXICOB.MX: Quote), which runs copper mines in Mexico, Peru and the United States and cargo train lines across Mexico, plans to grow its smaller construction arm with the airport project.

The company recently revealed in filings with the U.S. Securities and Exchange Commission that it had a 15.4 percent stake in GAP (GAPB.MX: Quote)(PAC.N: Quote).

GAP’s company bylaws prevent ownership of more than 10 percent and Grupo Mexico has taken their airport company to court over the issue.

“We went to a board meeting and they asked us to sell the additional 5 percent that we have. We decided to ask a court to see if that is valid or not,” Muniz said.

He said the GAP holdings were a good investment for Grupo Mexico and the company would not sell its shares even if the partnership looses the airport bid.

Grupo Mexico shares rose 0.42 percent to close at 40.61 on Friday, a day after the company reported its third-quarter results.[ID:nN28147964] [ID:nN29239166] (Reporting by Mica Rosenberg; Editing by Bernard Orr)

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