China Railway to Use Legal Means After Mexico Retracts Deal
Published By : 10 Nov 2014 | Published By : QYRESEARCH
China Railway Corp. announced that it would use legal methods to protect its interests after the government of Mexico pulled back a US$4 billion deal with a consortium led by China.
A China Railway spokesperson said that the company is highly shocked by the decision made by Mexico. There was complete compliance with the Mexican government for the high speed rail project’s bidding. The statement was made using a verified account on the Tencent Weibo social media service.
The state-run company stated it will set up a legal team and will resort to legal means if necessary, to protect the company’s legitimate interests.
China Railway announced this Tuesday that it had acquired a rail project in Mexico that was worth US$4 billion with a consortium of six firms. The consortium also includes CSR Corp, the state-owned train car maker. Four of the companies in the consortium are Mexican.
CSR had also confirmed that the deal had been cancelled by the Mexican government and has filed a statement with the Hong Kong Stock Exchange. The company said that it will continue to maintain communications with the project owner. Any significant progress will be announced in a timely manner.
China had the only bid for the rail project after 16 other names removed themselves from the process. The list included Siemens AG from Germany, Bombardier Inc. from Canada, and Alstom SA from France.
Many of the companies that pulled out of the bidding process said that the Mexican government had not issued them sufficient time to prepare their bids.