Category: M&A

As Latin America and the world head toward economic recession, investment bankers gear up for new kinds of offerings. Local mergers, tailor-made products and increased advisory work will shore up bankers’ bottom lines.

Convinced that Mexico offers outsized profits, Citigroup is plowing $12.5 billion into the country, creating its largest bank. Citi’s acquisition of Banamex changes the rules of the game in Mexico’s banking industry.

Foreign banks have not had an easy time digesting their Brazilian acquisitions. The record-shattering price Spain’s BSCH paid for Banespa will make its integration the most challenging regional purchase yet.

Hostile bids, strategic realignments and pressures on profits are all elements of Latin American M&A. The region is vulnerable to speculative attacks, but local firms are strengthening their core businesses and putting up defenses.

Mexico’s cement giant crosses the border to grab a prize US acquisition, boosting its cash flow and diversifying into a developed market. But the debt-financed purchase prompted S&P to put Cemex on credit watch.