The aftershocks from Donald Trump’s tectonic election as the next American president are still shaking the business world.
Jose Cuervo, the world’s largest tequila producer, has now reconsidered its plan to sell shares in itself, according to Reuters. The IPO was expected to raise as much as $1 billion. Sources told Reuters that Jose Cuervo will reassess in January—after Trump is inaugurated.
With Trump’s anti-globalization rhetoric, his opposition to NAFTA and free-trade, and threats to build a wall between Mexico and the US and deport millions of illegal immigrants, valuations of Mexican companies have slumped in recent weeks.
And the value of the peso has fallen versus the dollar.
If these conditions persisted, not only would the pesos raised during the IPO be able to support fewer global activities of the company—which would be paid for in dollars, euros, pounds, yen and yuan—but the sinking confidence in Mexican industry could mean even fewer pesos for the company to start with.