MEXICO CITY – The Grupo Financiero Banorte (GFNorte) announced on Wednesday the merger acquisition of Grupo Financiero Interacciones, whereby it will become Mexico’s second-largest financial group in terms of assets, loans and deposits.
In a statement, GFNorte said that it is expecting the transaction to be concluded in the second quarter of 2018, if and when the general assemblies of the two groups give their approval along with the Finance and Public Credit Secretariat.
GFInter shareholders would receive a combination of a cash payment of 13.7 billion pesos ($719.14 million) and 109.72 million GFNorte shares.
“To finalize the operation, Banorte will issue additional shares for about 4 percent of the amount of shares currently in circulation,” the group added.
GFNorte said that with the acquisition “Banorte is positioning itself as the leader in the financing of our country’s enormous infrastructure needs, which represents a unique opportunity to spur competitiveness, attract investment and improve the quality of life for Mexican families.”
Mexico, the group noted, is the world’s 12th-largest economy, but it ranks 57th in infrastructure, “which presents great opportunities for development.”
In addition, the acquisition “would strengthen Mexican banking and its competitiveness” and would reverse the trend toward “foreignization” that the sector has experienced for the past two decades, the group said.
The merger acquisition is subject to the opinion of the Bank of Mexico, approval by the Federal Economic Competition Commission and the conclusions reached by comprehensive audits.