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

Author

Listed:
  • José G. Vargas-Hernandez
  • José Satsumi López-Morales
  • Pablo Giovanni Palafox-Alcantar

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.

Suggested Citation

  • José G. Vargas-Hernandez & José Satsumi López-Morales & Pablo Giovanni Palafox-Alcantar, 2016. "Analysis of an Acquisition in the Banking Sector: Banamex and Citigroup," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(11), pages 1-39, October.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:11:p:39
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    References listed on IDEAS

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    4. Kojima, Kiyoshi, 1973. "A Macroeconomic Approach to Foreign Direct Investment," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 14(1), pages 1-21, June.
    5. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-295, November.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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