Equity Analysis /
Mexico

Flash ALFA/NEMAK: A new strategy to unlock value for shareholders

    Marissa Garza Ostos
    Marissa Garza Ostos

    Head of Equity Research

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    Valentin III Mendoza Balderas
    Valentin III Mendoza Balderas

    Senior Equity Research Analyst, Consumer & Telecoms

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    Banorte
    10 August 2020
    Published byBanorte
    Alfa has made the decision to spin-off its stake on Nemak (75%) and create "Nemak Holding", once approved by the shareholders meeting to be held on August 17. With this, Alfa aims to reduce its conglomerate discount against the value of the sum of its parts, by transitioning into a holding company instead. This marks the beginning of a positive long-term strategy targeting to make all its businesses independent.