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

Mopping up

Nov 1, 2011

Banorte-Ixe’s recent tie-up was the last of the large bank consolidations in Mexico, but mergers between smaller players are another story.

by Ivan Castaño

Mexico's midsize banks Banregio, Ban Bajio, Banco Multiva and Afirme could engage in M&A activity in the near to medium term as some of the country's banks struggle under shrinking profit margins and rising competition.

The merger between Banorte and Ixe created Mexico's third largest bank last year and may have marked the last such acquisition of this scale in the country's banking sector for quite some time, but some consolidation among smaller mid-tier names is still likely. 

The four banks could be interested in merging among themselves or at least buying a stake or fully acquiring one of many beleaguered non-banking financial institutions known as Sofoles and Sofomes, which have a combined market share of 5% in the Mexican banking system.

While Mexico's economy has not yet felt the impact from slowing US...

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

Are populist governments like Venezuela & Argentina turning pragmatic?

Vote