Bachoco Announces Notification of the Mexico's Federal Commission
of Economic Competition
CELAYA, Mexico, Nov. 14, 2012 /PRNewswire/ -- Industrias Bachoco
S.A.B. de C.V. ("Bachoco" or "the
Company") (NYSE: IBA; BMV: Bachoco), Mexico's leading producer and processor of
poultry and other food products, announced today:
In December 2009, Mexico's Federal Commission of Economic
Competition ("CFC") announced an investigation of the Mexican
poultry industry regarding possible monopolistic business
practices. Bachoco was included in
this investigation, and has been required to provide information to
the commission since then.
Recently, and as a result of this investigation, the Company
received a notification where the CFC determined that Bachoco contributed with other local producers
and distributors to fix prices (a prohibited practice in the
Mexican poultry industry), in the Peninsula de Yucatan region, and imposed a fine for
approximately $110,000 USD.
Bachoco does not agree with this determination, and will
defend itself according to the provisions of Mexican
law.
Today the company issued a press release in Mexico regarding this topic.
Bachoco is committed to free
market principles and regulatory compliance.
COMPANY DESCRIPTION
Industrias Bachoco is the leader in the Mexican poultry
industry, and one of the largest poultry producers globally.
The Company was founded in 1952, and became a public Company in
1997, via a public offering of shares on the Mexican and The New
York Stock Exchange. Bachoco is a
vertically integrated Company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are:
chicken, eggs, balanced feed, swine, and turkey and beef
value-added products. Bachoco owns
and manages more than a thousand facilities, organized in nine
productive complexes and 64 distribution centers in Mexico, and a productive complex in
the United States. Currently the
Company employs more than 25,000 people. In 2011, the Company
reported net sales of Ps. 27.7 billion.
The Company is rated AA (MEX), representing high credit
quality by Fitch Mexico, S.A. de C.V., and HR AA+ which
signals that the Company and the offering both have high credit
quality by HR Ratings de Mexico S.A. de C.V.
DISCLAIMER
The document contains certain information that could be
considered forward looking statements concerning anticipated future
events and performance of the Company. The statements reflect
management's current beliefs based on information currently
available and are not guarantees of future performance and are
based on our estimates and assumptions that are subject to risks
and uncertainties, including those described in our Annual
Information Form, which could cause our actual results to differ
materially from the forward-looking statements contained in this
document. Those risks and uncertainties include risks associated
with ownership in the poultry industry, competition for investments
within the poultry industry, shareholder liability, governmental
regulation, and environmental matters. As a result, there can be no
assurance that actual results will be consistent with these
forward-looking statements. Except as required by applicable law
Industrias Bachoco, S.A.B. de C.V. undertakes no obligation to
publicly update or revise any forward-looking statement.
SOURCE Industrias Bachoco, S.A.B. de C.V.