Abstract
The Mexican banking sector during 90´s it has had transitions from private to public and to private again, and it is one of the main sectors which have received Foreign Direct Investment (FDI), mainly from Spain. In this regard the main aim of this paper is to analyze the acquisition of Banamex by Citigroup. In order to reach this aim a case analysis method was carried out. The results suggests that Citigroup invested in Banamex for consolidate its presence in Latin America, the profits in Mexico, imitate the Spanish banks that some years ago have invested in Mexican banks, the banking sector in Mexico was deregulated as consequence of neoliberal policies and the potential market that represent Mexico, finally the acquisition of Banamex allowed competition in the banking sector and the entry of new competitors in the industry. t peculiar investment strategies have on the well-known relation between size and performance of SRI funds. major-bidi;mso-bidi-theme-font:major-bidi;mso-ansi-language:EN-GB;mso-fareast-language: ZH-CN;mso-bidi-language:AR-SA'>This paper analyzes the wealth distribution taking into account the reaction of the market to the alliance as an indicator of a successful strategy. It explores the case of the automobile industry, which is characterised by a high use of inter-firm cooperation, such as strategic alliances and mergers & acquisitions, to effectively compete in the global market and face the global crisis.
Highlights
The MNEs from developed economies are the major players in the international scenario (Castro-Olaya, Castro-Olaya, & Gonzalez-Perez, 2015)
The Mexican foreign policy since the entry into force of North American Free Trade Agreement (NAFTA) in 1994, Mexico has made efforts to reform the national economy by enabling open trade, dismantle trade barriers and attracting foreign direct investment, substituting industrialization model based on import substitution to be promoted abroad and inserted into the global economy
Foreign Direct Investment (FDI) applied by an acquisition is in important way to gain relevance in the international banking system (Novickytė & Pedroja, 2015; Calderon & Casilda, 2000); Citigroup developed a strategy that includes the acquisition of several banks around the world
Summary
The MNEs from developed economies are the major players in the international scenario (Castro-Olaya, Castro-Olaya, & Gonzalez-Perez, 2015) In this context the banking sector is not the exception, currently this sector is an important support of the world financial system. Socioeconomic modernization, taking as synonymous to the modernization and industrialization, required public intervention for the development of infrastructure and the industrial sector itself through multiple direct and indirect instruments, such as subsidies, tariff and trade policies and the selection of priority sectors It was hoped from this “mixed economy” that in later times imports were replaced, and come to export manufactured products and integrate the country into the world market (Dussel Peters et al, 2003)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
