BlackRock, the New York-based asset manager, is to acquire the asset management arm of Citibanamex – the Mexican subsidiary of Citigroup – in a deal that BlackRock says indicates its interest in expanding its business in the Latin American country.
For its part, Citigroup, which will see its Citibanamex clients in Mexico being given access to BlackRock investment products through a distribution agreement that is part of the deal, says it reflects its strategy of expanding access to best-in-class investment products.
The price and other details of the deal, which is subject to regulatory approval and is expected to close in the second half of 2018, weren’t disclosed.
According BlackRock, the transaction involves some US$31bn (€26.11bn) worth of Citibanamex assets under management, including local fixed income, equity, and multi-asset products, primarily held on behalf of retail clients.
Armando Senra, Head of Latin America and Iberia for BlackRock, said the acquisition represented “a big step forward” for the company in its efforts “to become a full solutions provider in key markets around the world”.
Jane Fraser, chief executive of Latin America for Citigroup, added: “Our goal is to create a state-of-the-art bank in Mexico focused on delivering a richer, smarter, more intuitive experience to everyone who does business with Citibanamex.
“The agreement with BlackRock delivers on our commitment, offering clients leading asset management services, and provides BlackRock with access to our extensive network in Mexico.”
Citibanamex is Mexico’s second-largest bank, according to Citi’s website, and provides wealth management products and services to more than 20 million clients through its 1,500 branches across the country.
BlackRock’s business in Mexico currently focuses mostly on institutional clients, offering international investment and risk management products and services across asset classes, strategies and geographies. Globally, the asset manager manages approximately US$5.977trn on behalf of investors.