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 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
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