After pledging not to expropriate private assets or “act in arbitrary ways,” Mexican President Andrés Manuel López Obrador has done just that — and the consequences for the country’...
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After pledging not to expropriate private assets or “act in arbitrary ways,” Mexican President Andrés Manuel López Obrador has done just that — and the consequences for the country’s business climate could be severe.
Last week the Mexican government seized a portion of a railroad in the South of the country belonging to billionaire Germán Larrea’s Grupo Mexico SAB. The private concession was deemed a “public utility” and will now be used by the military to help create a project long coveted by AMLO, as the Mexican leader is known: a transportation hub in the isthmus of Tehuantepec, which separates the Gulf of Mexico and the Pacific Ocean. Authorities hope the development could one day rival the Panama Canal.
