Moody’s places Santander as one of the favorites to take over Banamex

July 4. () –

The credit agency Moody’s has placed Banco Santander as one of the favorites to acquire Citi’s retail business in Mexico (Banamex).

The firm places the entity chaired by Ana Botín and the Mexican bank Banorte as the two most likely to acquire Banamex, although it does not rule out that other more specialized entities such as Banco Azteca and Banco Inbursa may participate in the purchase.

The purchase of Citi’s retail business in Mexico has generated a lot of interest since it was announced on January 11. Santander, Banorte, Inbursa and Banco Azteca have been some of the entities that have been interested in the operation.

However, some companies have already withdrawn from bidding for Citi’s business. Mexican businessman Ricardo Salinas, owner of Banco Azteca, Grupo Elektra and TV Azteca announced his decision not to continue in the race because it required “too much time and investment.”

In Moody’s opinion, both Santander and Banorte already have considerable experience in consumer banking, which would make it easier to manage Citi’s portfolio in Mexico. Added to this is the operational efficiency of both banks, which would help make integration easier, limiting the costs of closing and opening large-scale branches.

The agency also highlights that, with the operation, Santander would be the most benefited of the banks interested in incorporating its consumer portfolio. Likewise, both the Spanish bank and Banorte would benefit from lower financing costs.

Moody’s also notes that Banorte and Inbursa would benefit more from the core deposit base, while Azteca and Santander would benefit from lower funding costs, although Azteca would struggle to attract Banamex’s wealthier clients.

For Inbursa, owned by Carlos Slim, it would be difficult to provide individualized complementary services due to its focus on medium and large companies, according to the agency.