Wednesday, June 11, 2014

Spain/México: Spain's Banco Populár to Obtain Approval to Acquire 25% in México's BX+

According to The Latin American Tribune, Spain’s Banco Populár expects to receive final approval from Mexican banking regulators in “a few days” to acquire a 25% stake in México’s Grupo Financiero BX+, a deal that was announced in December 2013, CEO Angel Ron said Tuesday (June 10).

“The process is going well,” Ron told reporters after opening Foro Espyme, a conference aimed at helping Spanish and Mexican small-and-mid-sized businesses do more business abroad.

Executives are currently looking at the technology “gaps” between the financial institutions and expect to have solutions in place by this summer, Ron said.

A Banco Populár management team is already in México to discuss strategies in a number of areas, including technology and personnel, the CEO said.

The deal calls for Banco Populár to acquire 25% of BX+ for 97 million euros ($131 million) and for the Mexican bank’s biggest shareholders, the Del Valle family, and other Mexican business executives to acquire a 6% interest in the Spanish bank for 450 million euros ($609.3 million).

COMMENT: Banco Popular approved adding Mexican billionaire banker and industrialist Antonio del Valle Ruiz to its board of directors in April.

Del Valle represents the interests of México’s Grupo Financiero BX+ on Banco Popular's board.

“Today, [all present] that are here have international projects and it’s going well for them,” Ron said in response to a question about which types of small-and-mid-sized Spanish businesses had the best chances to succeed in doing business in México.
Mexican Economy Secretary Ildefonso Guajardo, Secretary of State for Trade and Spanish Foreign Trade Institute chairman Jaime García-Legaz and Spanish Confederation of Small and Medium Enterprises (Cepyme) president Jesús Terciado also attended the conference.