Creating and distributing additional copies is prohibited without the permission of the publisher. Contact subscriptions@latinfinance.com.

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 to...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial



LatinFinance Events

Poll

Will Argentina reach a deal with holdouts?

Vote