MEXICO CITY – Grupo Mexico announced on Tuesday an agreement to acquire 100 percent of Florida East Coast Railway for $2.1 billion.
The deal between GMexico Transportes S.A. de C.V. (GMXT) and the Florida East Coast Railway Holdings Corp (FEC) is subject to approval by regulatory agencies in both Mexico and the United States.
“The acquisition of FEC is an important strategic addition to our North American transportation service offering. Our acquisition of the FEC will significantly enhance the scope, scale and diversification of our service,” GMXT President and CEO Alfredo Casar said in a statement.
In Mexico, GMXT moves more than 1.4 million loads annually over a rail network extending more than 10,000 kilometers (6,200 miles), with international links through eight seaports and six border crossings.
FEC moves around 550,000 loads a year across 565 kilometers (350 miles) of owned railways in Florida.
Buying FEC “will immediately establish GMXT as an important railroad owner in the United States, adding a vital Florida rail line to the company’s existing operations in Texas,” the Mexican company said.