MEXICO Law and Practice Contributed by: Gabriel Robles, Héctor Cárdenas, Eric Silberstein and Eduardo Aiza, Ritch Mueller
remains comparatively resilient, buoyed by sponsors seeking to capitalise on the ongoing nearshoring trend in advanced manufacturing, logistics, and spe - cialty sectors. Global funds and strategic investors are increasingly stepping in to acquire assets at attrac - tive valuations, as evidenced by recent deals involv - ing major international players. This influx is partly driven by the opportunity to secure local capabilities, strengthen supply chains, and meet regional content requirements under the USMCA framework. Macroeconomic conditions have played a significant role in shaping market sentiment and deal activity. The peso’s strengthening in 2025, following a period of volatility influenced by the presidential elections in 2024 and structural legal reforms, US monetary policy, and global uncertainty, has provided some reassurance to investors. Nevertheless, currency risk remains a key consideration, affecting deal pricing, exit strategies, and the availability of financing. The upcoming renegotiation of the USMCA and the fear of renewed US tariffs continue to inject a degree of caution, particularly among multinational investors. These concerns are compounded by the percep - tion that Mexico’s recent legal reforms, particularly the constitutional reform to the judicial branch, could impact the investment climate or even conflict with trade treaty obligations. The judicial reform has raised concerns about the effi - ciency and impartiality of the Mexican court system, especially in disputes involving government entities. Although uncertainty around private disputes has lev - elled, there is still a growing preference for internation - al arbitration and extrajudicial mechanisms to mitigate exposure to local court risks. In addition, the recently enacted reform to the Mexican Economic Competition Law lowers the thresholds for mandatory notification of M&A transactions, subjecting a greater number of deals to review by the new revamped antitrust author - ity replacing COFECE, the National Antitrust Commis - sion, even where market overlap is limited. Looking ahead, the Mexican private equity market is expected to remain attractive for international inves - tors, particularly in the mid-market segment, fintech and other technology sectors, healthcare and sec - tors benefiting from nearshoring. Also, the Mexican
government’s active promotion of investment in key sectors, such as railways, infrastructure, and energy, under initiatives like Plan México, may create new opportunities for private equity. Continued vigilance regarding foreign exchange volatility, regulatory changes, and cross-border trade dynamics will be essential for sustaining confidence and deal flow in the sector. 2. Private Equity Developments 2.1 Impact of Legal Developments on Funds and Transactions Mexico’s regulatory landscape has evolved even fur - ther during 2024 and 2025, adding significant layers of complexity to the legal diligence required by private- equity investors. In July 2025, the Mexican Economic Competition Law was overhauled: COFECE and the IFT’s competition mandate were abolished and their powers consolidated in the newly created National Antitrust Commission (CNA), which is not independent from the federal government. The CNA will possess broader investigative authority (including more flex - ible and forceful powers and enhanced international co-operation), materially lower merger-control thresh - olds, and a markedly tougher sanctioning regime that now reaches fines of up to 15% of total turnover for absolute monopolistic practices, 10% for relative monopolistic practices or unlawful concentrations, and 8% for gun-jumping. As a result, any acquisition or add-on transaction involving a Mexican business now demands an early, transaction-specific competi - tion analysis to determine whether a pre-closing filing is mandatory. This may impact on the structuring and timing of transactions. At the same time, Mexico’s anti-money-laundering framework was comprehensively amended (effec - tive 17 July 2025). The reform lowers the owner - ship threshold for identifying a “beneficial owner” from 50% to 25%, formally incorporates “politically exposed persons”, extends vulnerable activities to real-estate development and construction, mandates automated transaction-monitoring systems, doubles the record-keeping period to ten years, and empow - ers the Financial Intelligence Unit (UIF) to act as a victim in criminal prosecutions. These changes require
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