Mexico Proposes National-Security Reviews for Foreign Takeovers in Strategic Sectors

Mexico’s Executive submitted an initiative to the Senate that would require national-security review when foreign investors seek more than 49% of a Mexican company that exceeds an asset threshold and operates in a sensitive field. Covered sectors include energy, transport, health, communications, mining, data, artificial intelligence, semiconductors, cybersecurity, quantum and nuclear technology, biotechnology, food security and defense. The National Foreign Investment Commission would have 60 business days, extendable once by 30, to approve, modify or block a transaction; no decision would mean denial. Proposed fines range from 1,000 to 200,000 UMA, depending on the violation.