Foreign direct investment in Mexico rose 28% in the first half of 2010 from a year earlier to $12.24 billion, boosted by a major acquisition in the beer industry and rebounding U.S. demand for manufactured goods.
The figure includes $7.36 billion that Mexico received in foreign direct investment during the second quarter, a 34% increase from a year earlier, the Economy Ministry said in a press release. The leading country of origin was the Netherlands, accounting for $6.96 billion.
Investment from the Netherlands was boosted by an acquisition as Dutch beer giant Heineken NV (HINKY, HEIA.AE) bought the beer business of Mexican retail and beverage company Femsa (FMX, FEMSA.MX) in an all-stock deal. The deal closed in the second quarter and was valued at $7.35 billion, including Heineken's assumption of $2.1 billion in Femsa debt and pension liabilities.
The No. 2 source of foreign direct investment was the U.S., accounting for $3.51 billion, followed by Spain, with $960 million.
Manufacturing industries received 63% of Mexico's foreign direct investment between January and June, reflecting the sector's impressive export-led recovery. Manufacturing output jumped 12% in the first half of 2010, as Mexican factories churned out goods such as cars, electronics and chemicals to meet rising demand from the U.S. and other trade partners.
Foreign direct investment in Mexico plunged during the 2009 economic crisis, falling 42% from the previous year to $13.98 billion.
Source: The Wall St. Journal