Chico Pardo Family Holds 25% of Banamex: Finance Week

This week in finance, Citigroup confirmed the Chico Pardo family’s purchase of a 25% stake in Banamex, while Moody’s warned that rising federal debt could threaten Mexico’s credit rating. At the same time, Banxico cut interest rates again, fintech innovation advanced with AI and stablecoins, and Banco Sabadell rejected BBVA’s takeover terms.

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Chico Pardo Family to Buy 25% Stake in Banamex

Citigroup announced that a company wholly owned by Mexican businessman Fernando Chico Pardo and his immediate family has agreed to acquire a 25% equity stake in Grupo Financiero Banamex. The transaction covers approximately 520 million common shares at a fixed price-to-book ratio of 0.80 times the local GAAP book value at closing. 

Moody’s Warns Mexico Debt Poses Credit Rating Risk

Mexico’s federal government debt could rise to levels that threaten its investment-grade rating, Moody’s Ratings has warned. A senior credit analyst in Moody’s sovereign risk group said the debt burden is projected to increase to between 45% and 50% of GDP by 2027, excluding the liabilities of state-owned oil company Pemex.

Banxico Cuts Benchmark Rate 25 bps to 7.50%

Mexico’s Central Bank (Banxico) cut its benchmark interest rate by 25 basis points to 7.50% in a majority decision, continuing the monetary easing cycle that began in March 2024. Deputy Governor Jonathan Heath cast the sole dissenting vote, maintaining his long-standing opposition to further policy loosening.

AI, Stablecoins, and Regulations Shift Latin American Finance

Stablecoins, artificial intelligence (AI), and evolving regulatory frameworks are reshaping Latin America’s financial services landscape, particularly in how remittances are used. Beyond sending money, consumers are now leveraging stablecoins for savings and spending and cross-border spending. 

Banco Sabadell Calls for Higher BBVA Takeover Offer

Banco Sabadell stated this week to Europa Press that any potential second takeover bid by BBVA would need to come at a higher price than the current offer. The statement followed remarks from BBVA Chairman Carlos Torres, who said the bank would “never” launch a second mandatory bid at a higher price.