“We would be talking about a company that has a wide diversity of businesses that are not connected to each other in a clear way,” said Alik García, deputy director of Valmex Casa de Bolsa.
In this way, investors seeking to have more disposition in the price of copper will not be able to use Grupo México as an efficient vehicle to obtain profits from the mining sector.
On the other hand, when entering a banking business-of nature very different from the mineral sector-, investment in Banamex will not help reduce costs or increase sales of Grupo México.
And it is that the bank requires investments that allow it to continue growing and consolidating in the market, since the arrival of Fintechs is causing greater competition and is stealing customers to traditional banking.
“While it is true that Banamex is an attractive asset, it requires considerable investment and growing flows to modernize its entire structure including systems,” Kapital Bank agreed in a report.
In the case of Grupo México Transportes, for example, the business could be linked to the transport of metals, making the company’s operational costs more efficient.
Finally, the members of Grupo México have no experience in the financial sector, which can cause the company’s learning curve to cause decisions to the interior of BANCO to cause a lag in front of its competitors, the specialist added.
The fall of the actions of Grupo México was considered by the expert as an overreaction of the market since the offer is in plans and Citi said he had not received an offer would still be.
“We are seeing an overreaction in the price of the Mexico Group action given the early stage in which this transaction is found,” he said.
It is then expected that in the following weeks, the price of Grupo México resumes its upward career as the acquisition process will be known.
One of the main differences in the behavior of Grupo México with those of ASUR, owned by Chico Pardo, is that Grupo México would be the investment vehicle to make the acquisition while Chico Pardo seeks to make the purchase with own and independent money to Asur.
Group Mexico will double its indebtedness
The purchase of 100% of Banamex would be valued at 9,359 million dollars according to Valmex estimates, which would double the size of its debt but the behavior of recent months has helped him increase its value.
“It is a station that is having a good time for the greatest prices of metals,” Garcia added. “That is significantly helping the sales of its mining division and we believe that this is what Grupo México is taking advantage of an offer of this size.”
Kapital Bank stressed that the Mexico Group action closed at 136.4 pesos, accumulating a 15%drop, which is equivalent to a loss of market capitalization near 189,000 million pesos.
“This amount is comparable to the implicit value of Banamex, which demonstrates the skepticism of the market and reflects the unattractive of the operation,” Kapital said.
