BlackRock Inc, the asset management firm, has announced its intention to buy the asset management arm of Mexico’s Citibanamex. The move will help BlackRock expand its business in Mexico, which has been marked as a key market for the company thanks to its promising growth potential.
To date, BlackRock has targeted only institutional clients in Mexico, however, the firm will now take on $31 billion in assets currently managed by Citibanamex, which largely come from retail investors. According to RFi Group data, Citibanamex is currently the largest retail investment provider in Mexico, holding a 17% share of the investment product market.
The deal is part of Citibanamex’s aim to improve its investment offering, by giving its customers access to market-leading products. Jane Fraser, CEO of Latin America for Citi, said of the deal that “Our goal is to create a state-of-the-art bank in Mexico focused on delivering a richer, smarter, more intuitive experience”.