MEXICO CITY, Oct 25 (Reuters) - Mexican bank Grupo Financiero Banorte said on Wednesday that it would spend 13.7 billion pesos ($719 million), plus shares, to acquire peer Grupo Financiero Interacciones.
As part of the deal, Banorte said it would issue additional shares for around 4 percent of the amount of shares currently in circulation.
The transaction will consist of 50 percent cash and 50 percent shares of Banorte, Interacciones said.
Banorte said it expects the deal to close in the second quarter of 2018, noting the transaction is subject to approval from regulators and both companies’ shareholders. ($1 = 19.0460 Mexican pesos) (Reporting by Julia Love and Anthony Esposito)