Ualá Acquires ABC Capital; Hot Sale Arrives: The Week in Finance

In this week’s roundup, the National Banking and Securities Commission (CNBV) approved Ualá’s request to acquire the bank ABC Capital. The 10th edition of the Hot Sale began on Monday, bringing multiple opportunities for Mexican businesses, considering that over 12 million buyers are expected to participate. 

Javier Guerrero, Managing Director Mexico, Nuvei, shared his insights for companies seeking to become successful in e-commerce. Finally, Mexico’s public sector revenues witnessed a 4.5% real growth in April 2023 compared to last year. However, the overall revenues between January and April 2023 displayed a 3.1% real annual decrease.

Interested in more? Read more in this week’s roundup! 

Ualá’s Acquisition of ABC Capital Bank Approved

The CNBV authorized technology company Ualá to acquire the bank ABC Capital. The process is expected to be formalized in the next few days, initiating a period of integration between the two companies. The acquisition will allow Ualá to strengthen its value proposition with the innovation, security, experience and trust in the local market that ABC Capital brings. The CNBV approved the acquisition following a favorable opinion from the Bank of Mexico (Banxico). 

The Hot Sale is Here! Find Out How Businesses Can Survive It

The 10th edition of the Hot Sale began on Monday. Within this edition, over 600 electronics, appliances, travel, clothing, fashion and luxury companies are expected to offer deals. It is estimated that there will be more than 12 million buyers. During Hot Sale 2023, AMVO estimates that seven out of 10 Internet users who plan to purchase will interact with businesses through the digital channel to consult and decide. Some of the tips shared by the study include: more banking alternatives and payment methods, collection security, adapting to customers and communicating on time with customers. 

The Three Keys to E-commerce Success Between the EU and Latin America

Javier Guerrero, Managing Director Mexico, Nuvei, shared the three keys e-commerce leaders should remember when doing business between Latin America and the EU. Latin American consumers see the EU as a paradise for luxury and high-end shopping, says Guerrero. Foreign direct investment reveals the historical link between these regions, as they both support strategic sectors such as energy and telecommunications. In 2022, Latin America has sought guidance from several European countries regarding regulation, personal data protection policies and open banking. In addition, Mexico is an excellent market for cross-border e-commerce, thanks to its open trade regime and proximity to the US. 

Mexico’s Public Sector Revenues Decline; Tax Collection Surges

Mexico’s public sector revenues witnessed a 4.5% real growth in April 2023 compared to last year. However, the overall revenues between January and April 2023 displayed a 3.1% real annual decrease, primarily attributed to the global decline in oil prices, which led to reduced oil revenues, according to the latest government data. According to the Ministry of Finance and Public Credit (SHCP), during the first four months of 2023, petroleum revenues plummeted by 28.8% in real terms compared to the same period in 2022. This decline was counterbalanced by a substantial 104.5% real annual increase in the collection of fuel and diesel taxes (IEPS) as the government reduced the price subsidies on these commodities.