Mexicos Banorte eyes Banamex, shares surge

div classBodysc17zpet90 cdBBJodivpBy Kylie Madryp

pMEXICO CITY Reuters Mexico‘s Banorte said on Friday that “nondisclosure agreements” had been signed as a preliminary step toward a possible bid for Citigroup’s Citibanamex subsidiary even as the Mexican lender targets organic growth with the planned launch of a digital bank.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pShares in Banorte were up more than 7, hitting a twoweek high after the company also delivered betterthanexpected earnings and executives said the lender is seeking approval from regulators to launch a digital bank.p

pChief Executive Marcos Ramirez Miguel said Banorte is fighting “for an even playing field” versus startups.p

pBanorte will present a proposal to its board and shareholders if it views terms regarding Citibanamex as “convenient,” Miguel said. Analysts have said they expect several banks could be interested in making an offer.p

pBanorte Chief Operations Officer Rafael Arana declined to say whether Citis “data room,” in which it would define sale terms, had already opened. p

p Reporting by Kylie MadryEditing by Elaine Hardcastlep

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