By Xavier Fontdegloria
Banco Santander SA stated Friday that it’ll not take part within the bidding course of for Citigroup Inc.’s retail unit in Mexico, often known as Banamex.
The Spanish financial institution had submitted a nonbinding provide for the unit but it surely has been knowledgeable that it will not be persevering with within the subsequent phases of the method, it stated in a press release.
Santander Chairman Ana Botin stated in February that the financial institution could possibly be anticipated to be a part of the bidding course of for Banamex, but it surely would not launch any capital improve to fund acquisitions.
“Now we have a fantastic enterprise in Mexico. We don’t want to purchase [Banamex],” she stated.
The bid Santander submitted for Banamex was aligned to a disciplined method to acquisitions, together with a strict return on funding threshold, an individual conversant in the matter stated. The financial institution feels very snug that Citi has opted to proceed with different bidders, the particular person stated.
Citigroup stated in January that it could exit its Mexico consumer-banking enterprise as a part of a strategic shift.
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