The deal underscores Mexico’s potential in the asset management market.
On Tuesday, the world’s biggest asset manager, BlackRock Inc stated it had agreed to acquire the asset management business of Mexico’s Citibanamex, a subsidiary of Citigroup Inc.
The deal underscores the growing potential of asset management in Mexico.
In a joint statement, both companies stated, as per the agreement, BlackRock will be in a position to offer asset management products to Citibanamex clients in Mexico.
In Mexico, Citibanamex provides its services and management products to more than 20 million clients in Mexico through its 1,500 branches.
The transaction, part of Citi’s focus on expanding its footprint in the best-in class investment products, involves approximately $31 billion in assets under management of Citibanamex, across equity, local fixed income and multi-asset products, that are primarily aimed at retail clients.
“Our goal is to create a state-of-the-art bank in Mexico focused on delivering a richer, smarter, more intuitive experience,” said Jane Fraser, CEO of Citi for Latin America.
According to Fraser,Mexico’s financial market has grown steadily at 8% per year and is expected to continue on this trend.
Currently BlackRock’s business in Mexico focuses mainly on institutional clients wherein it offers its risk management products, international investment and services.
“BlackRock’s ambition is to become a full solutions provider in key markets around the world. This transaction is a big step forward in that direction in Mexico,” said Armando Senra, Head of Latin America and Iberia for BlackRock.
The deal is expected to close during the second half of 2018.
The terms of the deal was not disclosed.