The process of M&A transactions in Mexico involving public companies is primarily regulated by the relatively new Securities Market Law (the ‘SML’) which came into force in mid-2006. The SML contains a detailed set of rules governing most practical aspects of the process and strives to further develop an efficient and transparent securities market, protect the interests of investors, minimise the systemic risk involved, foster greater competition and
regulate the operational and transactional issues involved in such market. In particular, the SML aims to effectively promote the access of medium-sized companies to the securities market, through implementing good corporate governance practices and regulations, and providing adequate protection for minority shareholders, as well as an improved legal framework governing publicly traded companies.