Mexican government prepares to take over Vulcan property – Bloomberg (NYSE:VMC)
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Mexico’s government is preparing to take control of a quarry and port owned by Vulcan Materials (NYSE:VMC) after negotiations failed to produce a deal to buy the property, Bloomberg reported late Monday.
Mexican President Andrés Manuel López Obrador’s administration is planning to declare the land south of the city of Playa del Carmen a natural protected area, which would prevent Vulcan (VMC) from extracting limestone at the site it has owned for decades, according to the report.
The government reportedly plans to move ahead barring an unexpected breakthrough or concession from the U.S. company during stalled negotiations in which the two sides have remained far apart.
Vulcan (VMC) has been in litigation and arbitration with Mexico since 2018 under NAFTA, which was later replaced with the US-Mexico-Canada agreement; the company previously said the government’s actions were illegal, and that it would add the most recent measures to an ongoing arbitration case against Mexico.
