Analysis of an Acquisition in the Banking Sector: Banamex and Citigroup

Jose Vargas-Hernandez, José Satsumi López-Morales and Pablo Giovanni Palafox-Alcantar

International Journal of Business and Management, 2016, vol. 11, issue 11, 39

Abstract: The Mexican banking sector during 90´s it has had transitions from private to public and to private again, and it is one of the main sectors which have received Foreign Direct Investment (FDI), mainly from Spain. In this regard the main aim of this paper is to analyze the acquisition of Banamex by Citigroup. In order to reach this aim a case analysis method was carried out. The results suggests that Citigroup invested in Banamex for consolidate its presence in Latin America, the profits in Mexico, imitate the Spanish banks that some years ago have invested in Mexican banks, the banking sector in Mexico was deregulated as consequence of neoliberal policies and the potential market that represent Mexico, finally the acquisition of Banamex allowed competition in the banking sector and the entry of new competitors in the industry. t peculiar investment strategies have on the well-known relation between size and performance of SRI funds. major-bidi;mso-bidi-theme-font-major-bidi;mso-ansi-language-EN-GB;mso-fareast-language- ZH-CN;mso-bidi-language-AR-SA'>This paper analyzes the wealth distribution taking into account the reaction of the market to the alliance as an indicator of a successful strategy. It explores the case of the automobile industry, which is characterised by a high use of inter-firm cooperation, such as strategic alliances and mergers & acquisitions, to effectively compete in the global market and face the global crisis.

Date: 2016
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