Mexico’s Richest Citizens.....

Mexico’s richest citizens have lost billions after an already-tumultuous year for Latin America's second-largest economy turned worse.....

Compounded by the crippling economic effects of the coronavirus pandemic in February and March, an already tumultuous year for Latin America’s second-largest economy erased billions from the fortunes of Mexico’s richest citizens–with most of the fallout happening in mere weeks.

In late February, while Mexico's reported coronavirus cases were still hovering in the single digits, the nation's billionaires were faring well, despite two quarters of economic contraction; the overwhelming majority were enjoying lofty gains thanks mostly to soaring share prices, and combined, they were worth $125 billion. Fast-forward two weeks, and all but one of the nation's billionaires were worth less than a year ago.

Just 12 billionaires from Mexico land on Forbes' 2020 ranking of the World's Billionaires—five fewer than in 2019. After more than a month of Covid-19 cases continuing to swell and President Andrés Manuel López Obrador downplaying the threat, the fortunes of Mexico’s remaining billionaires have shrunk to a combined $103 billion. That’s nearly 25% less than the $133 billion that Mexico’s billionaires were worth last year.



It’s not only a drop in equities that caused broad decreases among Mexican fortunes. When Forbes calculated fortunes for the list on March 18, 2020, the Mexican peso was at its weakest point ever compared to the U.S. dollar, with $1 trading for close to 24 pesos. In 2020 alone, the peso has fallen more than 25%.

No Mexican billionaire was hit harder than the nation’s richest person, telecom mogul Carlos Slim Helú, who again leads the ranks despite his fortune falling $12 billion, or nearly 19%, since last year. At $52.1 billion, Slim's net worth is still more than every other Mexican billionaire combined, but the impact of the virus has been palpable for Slim. One of his cousins tested positive for coronavirus in early March after a trip with other Mexican moguls to Vail, Colorado; Juan Domingo Beckmann Legorreta, CEO of Jose Cuervo and son of its billionaire chairman, Juan Francisco Beckmann Vidal (worth $4.3 billion), was also among those who got sick on the trip. Though Slim hasn't publicly spoken out about the virus, his foundation announced on March 25, 2020, it was donating $41 million (1 billion Mexican pesos) to purchase ventilators, face masks, gloves and other medical equipment, plus fund public health education across the country.

As public markets in Mexico roiled, several magnates lost their billionaire status. Among those no longer in the ranking are Emilio Azcárrago Jean, who inherited control of Mexico’s largest television company, Televisa, after his father passed in 1997, and David Penaloza Alanis, the CEO of listed infrastructure firm Pinfra, which his father founded in 1969. Televisa shares have tumbled more than 50% since late February; Pinfra shares are down nearly 30% over the same period. Fernando Chico Pardo, whose largest asset is airport operator Grupo Aeroportuario del Sureste, and brothers Jose and Francisco Jose Calderon Rojas, shareholders of Coca-Cola bottler and convenience store company FEMSA, also fell out of the rankings.

Though there were no billionaire newcomers from Mexico this year, the shifting market did give rise to a new richest woman in the country. María Asunción Aramburuzabala, who inherited a stake in beer giant Grupo Modelo from her father, is now Mexico's fifth-richest person, worth $5.6 billion. She is also now the only woman billionaire in Mexico. Last year the richest woman in Mexico, then worth $6.7 billion, was Eva Gonda de Rivera, the widow of former FEMSA chairman Eugenio Garza Lagüera. Gonda de Rivera fell off the list this year after recent stock exchange filings showed that her FEMSA stake is now shared with at least 16 other family members.

Here are Mexico’s 12 billionaires; net worths are as of March 18, 2020.



1-CARLOS SLIM HELÚ & FAMILY
NET WORTH: $52.1 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: TELECOM


Slim’s construction firm Promotora IDEAL looked to dial up Mexico's recently tepid capital markets in February, announcing a plan to raise more than $1.1 billion (25.8 billion pesos) in what would be the nation's largest public offering since March 2018. Promotora plans to use the funds to ramp up energy and infrastructure investments across the country. A weaker Mexican peso and a slide in the shares of Slim’s biggest holding, telecom giant América Móvil, pushed his net worth down $12 billion compared to 2019.


2-RICARDO SALINAS PLIEGO & FAMILY
NET WORTH: $11.7 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: RETAIL, MEDIA

Now the nation's second-richest person, after surpassing mining tycoon Germán Larrea Mota Velasco, Salinas Pliego was the only Mexican billionaire whose fortune went up over the past year. For that he can thank his family’s nearly 75% stake in appliance retailer and lender Grupo Elektra. Despite a broader market rout, Grupo Elektra posted strong earnings growth for its fourth quarter 2019, helping its stock bounce back after initial losses in early March. It's unclear, however, how long the good fortune will last. On March 27, Grupo Elektra said it was recording an unexpected $225 million loss on a loan made to a key U.S. client that filed for bankruptcy after failing to find cash amid coronavirus uncertainty.


3-GERMAN LARREA MOTA VELASCO & FAMILY
NET WORTH: $11 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: MINING

Shares of Grupo México, the nation’s largest mining corporation, ended a turbulent year down nearly 30% after one of the worst quarters since the Great Recession for copper miners around the globe. Larrea's net worth, which is mostly made up of his controlling stake in Grupo México, fell 17%.

4-ALBERTO BAILLERES GONZALEZ & FAMILY
NET WORTH: $6.4 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: MINING

Though it remains Mexico's fourth-largest fortune, the $6.4 billion amassed by Bailleres Gonzalez marks a $1 billion drop from last year, as shares of Industrias Peñoles, Mexico’s second-largest mining company, tanked nearly 50%. Initially started by his late father, the family empire now includes a basket of publicly traded stocks that includes stakes in department store chain Palacio de Hierro, insurance company Grupo Nacional Provincial and pension fund manager Grupo Profuturo.


5-MARIA ASUNCION ARAMBURUZABALA & FAMILY
NET WORTH: $5.6 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: BEER, INVESTMENTS

Now the sole Mexican woman on the billionaire rankings, Asunción Aramburuzabala inherited a stake in beer giant Grupo Model from her father before its $20 billion sale to Anheuser-Busch InBev in 2013. Today she sits on AB InBev's board and serves as CEO of investment firm Tresalia Capital, which has led investments in construction, telecommunications and technology. She also owns a minority stake in fashion line Tory Burch.
 

6-JERONIMO ARANGO & FAMILY
NET WORTH: $4.3 BILLION
RESIDENCE: LOS ANGELES
SOURCE OF WEALTH: RETAIL

Arango and his brothers, Manuel and Plácido, sold their retail chain to Walmart in 1997 for a reported $1.2 billion in cash, also nabbing a stake in Walmart de Mexico.


7-JUAN FRANCISCO BECKMANN VIDAL & FAMILY
NET WORTH: $4.3 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: TEQUILA
Juan Francisco Beckmann Vidal

Juan Francisco Beckmann Vidal Slaven Vlasic / Getty Images

A descendant of Don Jose Antonio de Cuervo, Beckmann today owns 85% of the world's largest tequila producer and Jose Cuervo maker, Becle. Though Becle's Mexico-listed stock edged up over the past year, the peso's fall against the U.S. dollar kept Beckmann’s net worth flat with 2019.


8-CARLOS HANK RHON
NET WORTH: $2 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: BANKING

The son of late politician Carlos Hank Gonzalez has interests in construction, tourism, energy, auto dealerships and more, which fell in value by approximately 10% since last year. He got close to $500 million in October 2017 when he sold his Grupo Financiero Interacciones to Grupo Banorte, the Monterrey-based bank founded by his wife’s father.


9-ROBERTO HERNANDEZ RAMIREZ
NET WORTH: $1.7 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: BANKING

The tycoon first made his fortune in finance, as a former shareholder of Mexican bank Banamex, which was acquired by Citigroup in 2001 for $12.5 billion. Though he diversified his holdings after the sale, his fortune ticked down amid the broader market rout, falling from $1.8 billion last year.


10-ANTONIO DEL VALLE RUIZ & FAMILY
NET WORTH: $1.6 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: CHEMICALS

His fortune, which stems mostly from a 42% stake in Mexico City-based chemical conglomerate Orbia Advance Corp. (formerly called Mexichem), plummeted 50% from $3.2 billion last year—the largest percentage drop of any Mexican billionaire. The coronavirus-induced market crash in March pushed shares of Orbia, which changed its name from Mexichem in September, down to half their value vs. last year's billionaires list. On March 27, 2020, the cash-strapped firm said it drew down $1 billion from its revolving credit line as a result of the Covid-19 outbreak.


11-RUFINO VIGIL GONZALEZ
NET WORTH: $1.2 BILLION
RESIDENCE: MEXICO CITY
SOURCE OF WEALTH: STEEL

The Mexican steel baron's net worth, which is mostly composed of his holdings in two steel companies, fell slightly from $1.3 billion due to continuing headwinds for the Mexican steel industry.


12-ALFREDO HARP HELÚ & FAMILY
RESIDENCE: MEXICO CITY
NET WORTH: $1.1 BILLION
SOURCE OF WEALTH: BANKING

The son of Lebanese immigrants and a cousin of Carlos Slim Helú, Alfredo Harp Helú diversified his fortune after receiving a hefty payout from Citigroup's 2001 acquisition of the Mexican bank he formerly owned, Banamex. Today his holdings span industries that include hospitality, athletic wear and flooring. Last year marked the opening of Harp Helú's eponymous baseball stadium, the nation's second-largest at 20,000 seats, in Mexico City. Today, amid the pandemic, it sits empty.

 

SOURCE:FORBES