Banamex Sale Falls Through After President AMLO’s Intervention
Banamex, Mexico’s second-largest bank, was on the brink of being sold to a consortium of investors led by Citigroup Inc. until President Andrés Manuel López Obrador (AMLO) intervened. The sale of Banamex, which was expected to be completed by the end of 2023, has now been put on hold indefinitely.
Background of the Banamex Sale
Banamex, a subsidiary of Citigroup, has been in operation since 1884 and is one of the oldest banks in Mexico. In 2018, Citigroup announced its intention to sell Banamex to a consortium of investors led by Grupo Financiero Inbursa, a Mexican financial services company owned by billionaire Carlos Slim. The sale was expected to be completed by the end of 2023 and would have resulted in Citigroup receiving $12 billion in cash and a 10% stake in the new Banamex.
AMLO’s Intervention
President AMLO has been a vocal critic of the sale of Banamex, arguing that it would lead to the privatization of a public asset and would result in job losses. He has also argued that the sale would be detrimental to the Mexican economy, as Banamex is a major source of employment and contributes significantly to the country’s GDP.
In May 2023, AMLO announced that he would intervene in the sale of Banamex and that the government would take control of the bank. He argued that the sale would be detrimental to the Mexican economy and that the government should take control of the bank in order to protect the interests of the Mexican people.
Reaction to AMLO’s Intervention
AMLO’s intervention in the sale of Banamex has been met with both praise and criticism. Supporters of the president argue that his intervention was necessary in order to protect the interests of the Mexican people and to ensure that Banamex remains in public hands. Critics, however, argue that AMLO’s intervention was politically motivated and that it will have a negative impact on the Mexican economy.
Impact of AMLO’s Intervention
The impact of AMLO’s intervention in the sale of Banamex is yet to be seen. It is likely that the sale of Banamex will be put on hold indefinitely, as the government has yet to announce any plans for the bank. It is also unclear how the government will finance the purchase of Banamex, as the bank is estimated to be worth around $20 billion.
Future of Banamex
It is unclear what the future holds for Banamex. The bank is currently in limbo, as the government has yet to announce any plans for the bank. It is possible that the government will keep Banamex in public hands, or that it will be sold to a private investor. It is also possible that the government will attempt to restructure the bank in order to make it more profitable.
Conclusion
The sale of Banamex was expected to be completed by the end of 2023, but President AMLO’s intervention has put the sale on hold indefinitely. The impact of AMLO’s intervention is yet to be seen, and it is unclear what the future holds for Banamex. It is possible that the bank will remain in public hands, or that it will be sold to a private investor. Whatever the outcome, it is clear that AMLO’s intervention has had a significant impact on the sale of Banamex.