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Banorte shares fall after announcing intention to purchase Citibanamex

Mexico City, Mexico — Shares of Grupo Financiero Banorte plummeted 6.72 percent Tuesday on the BMV (Mexican Bolsa) after the group expressed its intention to peruse Citibanamex. After a statement by Grupo Banorte confirming its intentions to acquire Mexico Citibanamex, shares fell to 150.05 peso.

“This is a historic opportunity to strengthen the national banking system, bringing together businessmen and the Mexican public. For Banorte, we would be proud to lead this initiative in the event it is judged profitable for our investors and banking users,” said Carlos Hank González, Chairman of the Board of Banorte.

Although the integration could represent the formation of a more complete commercial institution, investors did not approve of the news. After the announcement, the bank lost 35.2 million peso in market value, depreciating from 464 million peso on Friday to 428 million.

In January, American Citibanamex announced its exit from consumer and business banking in Mexico. Several Mexican agencies have expressed interest in acquiring the Mexican banking institution, however, nothing has materialized.