Going Big, Going Wide
Oct 1, 2001
Banorte, Mexico's leading regional bank, has bought Bancrecer, a bank with a strong branch network in an attempt to create a powerhouse operation that serves the enitre country.
Decisions about acquisitions of under-performing assets are rarely clear cut. So it's no surprise that Grupo Financiero Banorte's September purchase of Bancrecer, the last of the Mexican government-rescued banks to be sold, involved a careful evaluation of the pros and cons of the deal. But in the end, a bear market helped make Bancrecer's branch network attractively priced for Banorte.
By spending $174 million for Bancrecer's assets, Banorte will more than double its number of branches to 1,207 and increase its assets by some 70% to $17.5 billion, creating the third-largest bank in the country behind the Spanish and US-owned competitors. Monterrey-based Banorte has long aspired to become more than a regional bank, and bringing Bancrecer into its fold will give it a substantial presence in Mexico City and southeast and northwest regions of the country. Ultimately, Banorte is likely...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.