Brazil’s loss is Mexico’s gain as Motiva sells 20 airports to ASUR but the debt burden is high

At a single stroke, Mexico's ASUR, one of the three privatised airport operators there for almost three decades and the main foreign investor, has become one of the leading operators in Latin America by acquiring the airport portfolio of Brazil's Motiva.

Motiva was not that long ago considering expanding that portfolio but today, perhaps put off by high concession price demands in its home country, has switched its attention to huge rail and road contracts coming up in the near future. What impact that will have on any further airport concession deals in Brazil remains to be seen.

As for ASUR it is entering into a new and challenging world in which the number of foreign airports under its control exceeds the number of domestic ones. It has incurred a heavy debt burden to do so but will be emboldened by taking control of 17 Brazilian airports in what is the largest individual market by passenger numbers in Latin America in addition to its existing portfolio in the second largest.