Grupo Financiero Banorte (GFNorte) has agreed to buy Grupo Financiero Interacciones (GFInter) in a cash-and-share deal. The merger would position Banorte as the largest infrastructure lender in Mexico and the second largest bank in the country.
Banorte would pay 13.7 billion pesos ($719.39 million) in cash and 109.7 million of its shares. In order to do so, the Mexican bank would issue about 4% of new shares. The advisors are BofA Merril Lynch, Morgan Stanle, White & Case, and FTI Consulting.
The operation is expected to close in the second quarter of next year, pending regulatory and compliance authorizations.
"With this deal, Banorte positions itself as a leader in the financing of the enormous infrastructure necessities of our country, which represents a unique opportunity to propel competitiveness, attract investment and improve quality of life for Mexican families," said Marcos Ramirez Miguel, chief executive officer of Banorte.
The merged entity will become second in assets, loans and deposits:
Banorte has had many succesful M&A operations thus far: