Background on Key Players
Grupo Financiero Banorte, a prominent Mexican financial group led by Director Marcos Ramírez, is once again considering the possibility of acquiring Banamex, Citi’s former retail banking unit in Mexico. This news comes after Banorte withdrew from the competition for Banamex in 2022, as Citi ultimately failed to find a buyer for the unit.
Historical Context and Previous Attempts
Citi had nearly sold Banamex to the mining conglomerate Grupo México for $7 billion. However, tensions between the group and then-President Andrés Manuel López Obrador caused the deal to fall through.
Instead, Citi plans to take Banamex public in Mexico, potentially resulting in a dual listing in Mexico City and New York.
Banorte’s Current Stance
Ramírez stated, “There are many moving parts, so we will closely examine what’s happening and propose accordingly.” He further emphasized that the company’s responsibility is to analyze market conditions and let the board of directors make a decision, ultimately respecting the wishes of the shareholders.
Upcoming Banorte Shareholder Meeting
Banorte is set to hold a shareholders’ meeting later on Wednesday, where they will propose a dividend of 9.99 Mexican pesos (approximately $0.51) per share, as well as reinstating a 32 billion pesos share buyback program over the next 12 months.
The financial group’s stock was up by 2.77% to 161.61 pesos at midday on the BMV, although it had risen over 5% earlier in the day following the release of their first-quarter results.
Key Questions and Answers
- What is Grupo Financiero Banorte? It’s a significant Mexican financial group led by Director Marcos Ramírez.
- Who is Citi? Citi is a global financial services corporation offering banking, credit card, and investment services.
- What is Banamex? Banamex was Citi’s retail banking unit in Mexico before being separated from Citi last year.
- Why is Banorte revisiting the potential acquisition of Banamex? Ramírez mentioned “many moving parts” in the market, indicating that Banorte will analyze the situation before making a decision.
- What were the previous attempts to sell Banamex? Citi had nearly sold Banamex to Grupo México for $7 billion, but the deal fell through due to tensions with then-President Andrés Manuel López Obrador.
- What are Citi’s current plans for Banamex? Citi intends to take Banamex public in Mexico, potentially resulting in a dual listing in Mexico City and New York.
- What will Banorte discuss at its upcoming shareholders’ meeting? Banorte plans to propose a dividend of 9.99 Mexican pesos per share and reinstating a 32 billion pesos share buyback program.
