In this study we analyze whether mergers reduce

the capital cost of public companies in Mexico. For this

purpose, we start with a sample made up by companies from

different sectors that form the Stock Market Index (IPC,

by its name in Spanish) that made an acquisition operation

approved by the Mexican authorities during 2010 and 2011.

In order to estimate the capital cost we used the traditional

CAPM and the D-CAPM, which considers a downtrend risk.

Both estimates were made three years before and three years

later after the acquisition with two measuring methods:

Ordinary Least Squares and Fuzzy Regression. The results

show an advantage of the fuzzy regression method over the

ordinary least squares, mainly for periods with a high uncertainty.

Besides, taking into account the estimations of the

D-CAPM model, we can conclude that for the companies in

the sample, there is a 0.62 to 0.65 chance of reduction in the

capital cost after the merger.