| MEXICO CITY
MEXICO CITY Nov 27 Banorte, which runs one of
Mexico's biggest financial groups, said on Tuesday it has
reached a deal to buy a local pension fund owned by Spain's BBVA
in a deal valued at $1.6 billion.
The cost of the acquisition of the Bancomer pension fund
will be split in half between Banorte and the
Mexican Social Security Institute, a state run health
organization. The two co-own the Afore XXI Banorte pension fund
Earlier this year, Banorte's chairman and former head of
Mexico's central bank, Guillermo Ortiz, told Reuters that the
group was also looking at BBVA's pension funds in
Colombia and Peru.
Banorte, Mexico's No. 4 bank by assets, has been actively
strengthening its operations in the country. Last year, the
group bought boutique bank Ixe, which gave it access to Ixe's
portfolio of wealthy clients.
The group's chairman emeritus, Roberto Gonzalez Barrera, 81,
died in August from complications related to pancreatic cancer.
The bank said his heirs remain major shareholders after his
Banorte shares ended up 0.14 percent at 74.11 pesos on