New pre-merger filing thresholds

Please be informed that as a consequence of the recently published update to the value of the Unit for Measurement and Adjustment (“UMA”) for year 2018, the monetary thresholds established in the Competition Law which trigger the obligation to notify a concentration to the Federal Economic Competition Commission (“COFECE”) have changed as follows:

The new daily value of the UMA will be MX$80.60 pesos and will enter into force on February 1, 2018.

In this regard, a concentration will be subject to a mandatory filing before COFECE by reaching at least one of the following thresholds:

(i) If the transaction or series of transactions that give rise to the concentration, notwithstanding the place of execution, represent within Mexico, directly or indirectly, a value greater than MX$1’450,800,000 pesos; and/or

(ii) If the transaction or series of transactions giving rise to the concentration, result in the acquisition of 35% (thirty five percent) or more of the assets or shares of an economic agent which total assets or annual sales located/originated in Mexico are worth more than MX$1’450,800,000 pesos; and/or

(iii) If the transaction results in (1) an accumulation within Mexico of assets or capital stock in excess of MX$$677,040,000 pesos, and (2) the assets located in Mexico or annual volume of sales originated in Mexico of the economic agents involved in the concentration, jointly or separately, are worth more than MX$3’868,800,000 pesos.

*Please note that the exchange rate varies daily. For ease of reference, the exchange rate published by the Bank of Mexico on January 11, 2018 is MX$19.24 pesos per US Dollar.

Mexico City, January 15, 2018.