Gruma’s shares on the Mexican Stock Exchange (BMV) had their deepest fall in more than 12 years this Monday, after the antitrust authority reported on the lack of effective competition in the corn flour market for tortillas.
The company’s shares fell 7.64% to 334 pesos per share, the largest percentage drop since the 7.96% on April 26, 2012, according to data from Investing.com.
Earlier, the Federal Economic Competition Commission (Cofece) reported that it had detected that there is no effective competition in the production, sale and distribution of corn flour for tortillas, and pointed out the producer for taking over the majority of the market.
The regulator stated that the solution to reactivate competition in this market is for Gruma to sell five nixtamalized corn flour production plants, as well as the entire distribution fleet and sales force of said facilities.
In addition, the firm must eliminate strategies designed to prevent tortilla factories from changing suppliers, and implement transparency and supervision mechanisms, in order to increase competition.
Lee: Cofece considers that Gruma should sell 5 plants to promote competition in corn flour
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