The Ministry of Finance ruled out this Wednesday that the sale of Banamex generates concentration in the financial system after Banorte’s exit from the purchase process.
“We had the danger that there could be greater concentration, fortunately in recent days it has already been ruled out. Players who seek to stay with the bank are going to encourage competition with other banks,” said Alfredo Navarrete Martínez, head of the Banking Unit of Securities and Savings of the Ministry of Finance.
The official stressed that there is currently a huge concentration in banking with 6 banks that dominate the financial system. These are BBVA Mexico, Santander, Banorte, Citibanamex, HSBC and Scotiabank.
“The announcement of the sale of Citibanamex fell like a glove on us, because it gives us an opportunity to reconfigure the Mexican financial system,” said the official.
Banorte announced last week that it was withdrawing from the bid to buy one of the banks with the longest history in the country. Citigroup has some conditions for those who are interested in buying Banamex, in addition to the price (which some estimate at 8,000 million dollars).
The bank led by Jane Fraser is still analyzing between its options making an Initial Public Offering (IPO) and direct sale. If the latter occurs, they will seek that the new owner has a strategy for the more than 39,000 workers of Citibanamex as well as the care of cultural heritage.
President López Obrador has declared that the buyer be Mexican, so that the profits and the cultural heritage remain in the country; that the buyer does not have debts with the SAT and that the workers are not fired.