Photo: Banorte Buys from Spain Bancomer
Mexico’s Grupo Financiero Banorte said it completed its $1.7 billion acquisition of the retirement management business of Bancomer, which is controlled by Spanish banking giant BBVA.
The combined business, known as Afore XXI Banorte, “is the largest retirement management company” in Mexico, overseeing 11.7 million accounts worth 522 billion pesos ($40.78 billion), Banorte said in a statement.
Customers will be charged an annual management fee of 1.1 percent of assets starting Monday, “the lowest of all the private retirement management companies” in Mexico, Banorte said.
Afore XXI Banorte will have 99 offices across Mexico and 11 Special Retirement Fund Management Companies that will focus on individual retirement savings accounts and private pension funds, the financial institution said.
The retirement funds manage 5.6 million accounts worth 25.48 billion pesos ($1.99 billion).
BBVA Bancomer, the Mexican unit of BBVA, announced the deal in late November and federal regulators approved the sale on Dec. 18.