Santander was the only known foreign bank to make an offer after President Andrés Manuel López Obrador said he preferred Banamex to be bought by local investors like Slim. Such a sale would dilute the concentration of foreign ownership of Mexico’s banks.
Banorte, one of the four main banks in the country behind Banco Bilbao Vizcaya Argentaria SA, is one of the main contenders for the acquisition of Banamex, or Banco Nacional de México, which is valued at 4,000 million to 8,000 million dollars.
Including Banamex would potentially make Banorte roughly the same size as BBVA Mexico, or even larger.
A Citigroup spokesman declined to comment, as did Santander. Grupo México, Inbursa and Mifel did not respond to requests for comment. While the non-binding offers were due this week, the sale is in its early stages and any deal could still fall through.
Ana Botín, president of Santander, said last month that she sees Mexico as a “growth engine” for the bank. She added that the Spanish bank would seek to buy Banamex only if she could pay in cash, keeping her capital and dividends.
Slim’s bank, Inbursa, has said it could participate in an offer along with other Mexican investors.
Larrea, along with Slim, had been invited by the president to participate in the sale, according to one of the people. It was not clear if his offer was made by Grupo México.
Peruvian miner Southern Cooper Corp., which is 89% owned by Grupo Mexico, increased its most recent dividend as its parent cut its most recent payout, Bloomberg data shows, suggesting the company may be accumulating cash for a possible purchase.
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.
Citigroup has said it intends to continue operating a locally licensed banking business in Mexico through its institutional client group and private banking division. The New York-based firm is weighing a deal to buy the Mexican bank from Deutsche Bank AG.
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.
