López Obrador proposes to buy Banamex after Citi’s announcement to place it on the stock market

The president of Mexico, Andres Manuel Lopez Obradorreiterated this Wednesday its intentions to acquire Banamex after Citigroup reported this morning that it had canceled the bank’s sale process with Mexico Group and will place it on the Stock Market for the purchase of shares.

“And today I do maintain that if the bank is not bought, because they have been working on the negotiation for about a year and they are also slow processes, (…) then if they do not want to sell, then we are going to talk to them, we do not rule out the possibility ( to buy it)”, the president said during his morning press conference.

In addition, the Mexican ruler pointed out that the suspension of negotiations between Mexico Group and the American bank Citigroup was due to the fact that more guarantees were being requested, “but it’s a matter between them“, said.

“(They were asking for) more guarantees, who knows what kind of guarantees. I think the people from Citi heard us here that it was a good business”, he ironized.

This Wednesday morning the US bank Citigroup announced that it cancels the sale process of the consumer financial entity Banamex, that it will take it public and that it will remain in Mexico as a business bank.

After the announcement, Lopez Obrador assured that in Mexico “yes we need a bank” and estimated that his Administration could have up to US$ 3,000 million to offer for the bank, while another 2,000 million would be sold in shares to the Mexicans who wanted.

He indicated that he will consult with the Secretary of the Treasury to see the possibilities, since he assured that “if we have” money for the purchase.

“Not to brag, but public finances are strong”, he asserted.

noted that Mexico You need a bank and the sale of Banamex “it’s an opportunity“Well, he reiterated, it is”a good business” since the Mexican government is the main client of the banks in the country.

Banamexthe fourth banking group in the country that was acquired in 2001 by Citigroup For US$12.5 billion, it currently has 1,300 branches, 9,000 ATMs, 6,600 commercial clients and 12.7 million private clients, in addition to 10 million pension fund holders.

Banamex it will maintain the entire portfolio of credit cards, retail banking, consumer loans, mortgages, insurance, pension funds and deposits; as well as its 38,000 employees, its historic buildings and its art collection, Citigroup said.

Today, The Wall Street Journal considers that the constant interference by the Mexican president has aborted the sale of Banamex, to which he has made constant allusions in his morning press conferences and his statements that any agreement should include a guarantee of conservation of jobs, taxes and the works of art of Banamex, which, in no case, would leave the country.

Source: EFE