It looked like the start to another fine year for one of Mexico’s most powerful bankers. Citigroup Inc. Co-President Manuel Medina-Mora held court last month at a Mexico City breakfast where colleagues talked shop over mango, melon and banana. He sat at the right arm of the nation’s president at another February meeting when Enrique Pena Nieto toasted the bank’s drive, charity and influence.
America Movil SAB, the phone giant controlled by billionaire Carlos Slim, tumbled on concerns that profits would suffer in its home market under a proposal sent to Mexico’s Congress by President Enrique Pena Nieto.
America Movil SAB and other Mexican phone companies would have to phase out long-distance charges and other fees under a bill proposed by President Enrique Pena Nieto, who is pushing ahead with a plan to boost competition.
America Movil SAB and Grupo Televisa SAB were ordered by Mexico’s government to share their infrastructure with competitors in a bid to cut the market share of the nation’s dominant phone and media companies.
Efforts by Citigroup Inc. senior executives to tighten controls in Mexico were rebuffed by managers there for at least five years before the U.S. bank found the local unit had suffered a $400 million loan fraud last month, four people with direct knowledge of the matter said.
When Enrique Pena Nieto ran for president in 2012, opponents nicknamed him the Televisa candidate for what they described as favorable coverage from Mexico’s largest broadcaster. Now as president he’s pushing for more competition that will hurt Grupo Televisa SAB’s revenue growth.
Grupo Televisa SA Chief Executive Officer Emilio Azcarraga said the world’s biggest Spanish- language broadcaster is making its $1.6 billion bet on wireless to expand faster than it can in its traditional media business.
Mexican billionaires Carlos Slim and Emilio Azcarraga, who typically go head-to-head for phone customers and TV viewers, are taking their rivalry to the soccer field this week in their country’s championship game.
Grupo Televisa SA, the largest Spanish-language broadcaster, is interested in entering the Mexican wireless market, Chief Executive Officer Emilio Azcarraga said in comments to reporters in Mexico City today.