The second bidder in Banco Mifel, whose general director, Daniel Becker, is the current president of the Association of Banks of Mexico (ABM).
Below we present the most important bidders for the assets of Citigroup in Mexico, whose entity will now only focus on serving the institutional client market and its private banking division in the country.
Mexico is home to the world’s largest network of Citigroup branches. The decision to separate is in line with CEO Jane Fraser’s drive to streamline operations and focus on wealth management and US credit card offerings.
German Larrea
This Mexican businessman, along with Carlos Slim, would have been invited by President Andrés Manuel López Obrador to participate in the sale, according to sources from the Bloomberg agency.
Peruvian miner Southern Cooper Corp, which is 89% owned by Grupo México, increased its most recent dividend as its parent cut its most recent payout, suggesting the company may be hoarding cash for a potential purchase.
Mifel
Mifel is the 18th largest bank in the country by total assets, with less than 1% of the market. Its executive director, Daniel Becker, took over as head of the Mexican Banking Association (ABM) last year.
Banorte
The entity directed by Marcos Ramírez remains one of the main contenders for Banamex.
“We have already begun to have contact. (Citibanamex) begins to open its accounting, it takes months to process. We have nothing, all the interested parties are signing the agreements to enter the data room and see the information,” said Marcos Ramírez, general director of Grupo Financiero Banorte, last April.
The banker said that in this first stage they are signing the confidentiality agreements because “it is not that you come in and run away.”
“They let you enter the data room, but there really are a lot of rooms and a lot of information. They begin to open your accounting of all the companies. The questions begin, they are processes of months. It is not that one arrives and starts running, no, It’s months to start digesting all that type of information, ponder models and see how they are,” he explained.
Santander
This bank of Spanish origin is also interested in knowing the value of Banamex’s assets for sale.
“Banamex represents an attractive opportunity and we must see if it is the best way to increase our exposure in the Mexican market. We have said that we are interested but we cannot comment on the details of the transaction, given the confidentiality agreement that we have signed with Citi” , said Héctor Chávez, director of Investor Relations at Santander México, at the end of last April.
Santander Mexico said that it has a capital of approximately 26,000 million pesos and is analyzing the possibilities in which it can buy the bank.
Inbursa
Inbursa, owned by businessman Carlos Slim, also plans to participate in the purchase of Banamex together with other Mexican investors: “We maintain the same interest (purchase). Inbursa will participate jointly with Mexican negotiators and investors. We are not going alone,” said Frank Ernesto Aguado, director of investor relations at the bank, on April 29.
Ricardo Salinas Pliego
He was the first major Mexican businessman to publicly express his interest in Banamex assets.
“I have always believed and invested in Mexico and Mexicans. That is why I have asked my team to analyze the convenience of acquiring @Citibanamex and redouble my bet on Mexico, Mexicans and their future,” he wrote on his Twitter account in the past. January 11.
The businessman compared Citigroup’s departure from retail banking in the country with Best Buy’s departure at the end of 2020. “Let them say how much they want for their changarro and we’ll see, @Citibanamex open from 9 to 9, 365 days a year “, He referred in another message on the social network.
Javier Garza
Javier Garza, founder of a business group that supports the López Obrador administration, assured the Reuters agency last February that he receives about four calls a day from potential investors interested in Citi assets.
He says that his main goal is to return the bank to Mexican hands, a task he shares with President López Obrador, with whom he assured that he maintains fluid communication.
What is sold?
The businesses that remain sale They are the Banamex brand, the branches and customer accounts, the cultural heritage that includes buildings in the Historic Center (such as the Iturbide Palace), the payroll credit business, cards, mortgages, auto and SMEs. The Afores and insurance business will also be put up for sale.
