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