Written in ECONOMY he
Mexico Groupheaded by German Larrea and one of the main interested parties in acquiring BanamexI would be negotiating with Citigroup so that he keeps a part of said banking institution and then it is sold in a public offerthis according to Nacha Cattan, a journalist from Bloomberg.
In recent days, Larrea negotiated a possible financing of 5 billion dollars in order to acquire Banamex, a bank that has been in the sale process since January 2022, when Citigroup announced that it would withdraw its commercial banking operations in Mexico; other groups such as Inbursa or Santander have given up their purchase options.
If part of the Banamex shares become publicly offered, they will be sold through the Mexican Stock Exchange (BMV). This process is known as Initial Public Offering (IPO, for its acronym in English), where the sale of shares at an overprice and the issuance of dividends are sought.
The Law of the marketc of values specifies that an Initial Public Offering is the “offer, with or without a price, that is made in national territory through the mass media and to an unspecified person, to subscribe, acquire, sell or transmit securities, by any title”.
Also known as Description They are methods that companies (large and small) seek to acquire long-term financing. However, those interested must meet a series of requirements, among which are: a history of operations of at least three years, having a capital of at least 20 million investment units, 10 million shares subject to the public offering and 200 shareholders.
Only in the event that a part of the Banamex shares end up as IPOs, individuals have two methods to acquire them: directly at the brokerage house or through the instruments offered by the Afores in Mexicosuch as Exchange Traded Funds (ETFs).
In the event that Germán Larrea and Grupo México agree to take over Banamex, they will have to face some challenges, including: finding a way to cut expenses without resorting to massive layoffs, something that President Andrés Manuel López Obrador (AMLO); apart from that you risk being saddled with an expensive franchise, according to Archyde.com.
At the moment it is only a possibility and both parties are negotiating, since this would imply that Citigroup will not withdraw from commercial banking in Mexico during the established term. In addition to the fact that the total purchase process of Banamex could be extended beyond 2023.