The Federal Economic Competition Commission (Cofece) detected that there is no effective competition in the production, sale and distribution of corn flour for tortillas and pointed out Gruma for taking over the majority of the marketaccording to the extract of a preliminary opinion of an investigation published this Monday in the Official Gazette of the Federation (DOF).
Cofece determined that in eight relevant geographic markets there is “a highly concentrated structure” in sales and noted that Gruma not only leads all marketsbut has shares of between 50% and 90% of the business.
“Competition is limited, with Grupo Minsa as the second most important competitor, but maintaining a considerable gap with respect to Gruma,” according to the preliminary ruling.
The Cofece concluded that Gruma “has the ability to set prices” in relevant markets and ordered it, as a corrective measure, to divest several assets, such as corn flour production plants.
The Mexican antitrust regulator also instructed him to suppress commercial strategies such as establishing minimum and exclusive purchase commitmentsor the decoupling of the payment of debts in exchange for the acquisition of flour.
Gruma shares fall more than 5% after the publication of the opinion
Gruma, one of the largest producers of flour and corn tortillas in the world, said in a statement that it was notified of the ruling and that it “is carefully analyzing” its content. Due to the preliminary nature of the ruling, he added that it is not possible now to predict what Cofece will finally resolve.
He explained that he has collaborated “openly and in good faith” with the regulator since the beginning of the investigation and will continue to do so “to assert, within the legal period of 45 business days, the rights and legal remedies granted by the Constitution and applicable laws.” “.
Founded in 1949, the company operates in the United States, Mexico, Central America, Europe, Asia and Oceaniaand has about 24,700 employees and 75 plants. In 2023, it achieved net sales of approximately $6.6 billion, of which 71% came from operations outside Mexico.
The Gruma shares on the Mexican Stock Exchange (BMV) fell 5.16% on Monday morning, after the publication of the Cofece ruling.
