Banorte does go for Banamex. It is analyzing it internally to determine whether or not it will participate in the bidding.
In other words, he still hasn’t raised his hand openly but he is interested because he has decided to analyze the convenience of his purchase.
For now, it is analyzing whether its acquisition adds value to its shareholders and if so, they would submit it for their consideration and make it public.
Finally, the CEO of Grupo Financiero Banorte, Marcos Ramírez, revealed the mystery.
Until now, the President of the Republic, Andrés Manuel López Obrador, had mentioned it among the potential buyers, along with Carlos Slim’s Banco Inbursa and Ricardo Salinas Pliego’s Banco Azteca. He also said that businessman Javier Garza Calderón had expressed his interest in a letter.
Until now, publicly, only Salinas Pliego had raised his hand. Despite the fact that Banorte, chaired by Carlos Hank González, had been pointed out by different analysts as the favorite for the purchase, the institution had not given any sign.
It was until yesterday, with the presentation of the quarterly results, when he made his intention public.
Banorte is the fourth bank in the system and has a market share of 11.25%.
Under the same indicator, that is to say, BBVA’s market share –which up to now has not shown interest and, if so, would be the one with the greatest problem because it would notably increase its market power– has 22.74% and is the first place among the banking institutions.
The second place is Santander with 15.05% and the third place is occupied by Banamex with 12.24%.
Inbursa is in sixth place with 5.81% and Banco Azteca is in eighth place with 2.18 percent, according to statistics from the Ministry of Finance and the National Banking and Securities Commission until November 2021.
Analysts see Banorte as one of the best positioned to buy for several reasons.
One of them is that its growth has been precisely based on the purchase of other banking institutions. It has experience and has been able to integrate other banks into its brand.
Also, he has good numbers. Precisely yesterday in the presentation of its financial results it was reported that Grupo Financiero Banorte registered a net profit of 35 thousand 048 million pesos in 2021, 15 percent more than the previous year.
Additionally, according to Bank of America Merrill Lynch (BoFa) analysts, Banorte, with a market capitalization of 20.77 billion dollars, is the best positioned bank to acquire Banamex.
And one more reason for those who think that Banorte could stay with Banamex is that Carlos Hank González has a very good relationship with President López Obrador.
We will have to wait for the result of the analysis carried out by the Banorte team to see if it concludes that it adds value to its shareholders and if they decide to bid for Banamex.
Competition, the core
By the way, much has been speculated about what the Federal Economic Competition Commission (Cofece), chaired by Brenda Hernández Ramírez, should analyze and resolve, regarding the sale of Banamex by Citi.
It must be said that the regulatory body for economic competition is an eminently technical entity.
Consequently, their analyzes do not take into account issues of a subjective, ideological or political nature.
In the case of Banamex, Cofece has to wait for:
1.- That it be defined who will be the agent or agents that will seek to buy it.
2.- The interested parties must submit to Cofece information that allows evaluating the impact that the merger would have on the competition.
3.- Cofece would make a comparison of the current market conditions and those that would be generated from the concentration of the companies.
4. If it is found that there are no risks to competition, the operation is authorized.
But if the potential market power of the buyer allows it to impose its conditions against consumers, conditions are not authorized or imposed to avoid that harm.
Rich and Powerful
He has worked uninterruptedly in newspapers, magazines, radio, television and the Internet, in the last 31 years he has specialized in business, finance and economics. He is one of the three hosts of the program Alebrijes, Águila o Sol, a program specialized in economic issues that is broadcast on Foro TV.