With a network of 1,500 branches in Mexico, Citibanamex offers wealth management products and services to over 20 million clients.
The deal covers $31bn worth assets under management, including fixed income, equity and multi-asset products. Most of the products are related to retail clients.
Citi is divesting the asset management business to focus more on expanding access to best-in-class investments products.
Currently, BlackRock is mostly focusing on institutional clients in Mexico through providing international investment and risk management products and services across asset classes, strategies and geographies.
Subject to regulatory approvals and customary closing conditions, the deal is expected to complete during the second half of 2018.
Once the deal concludes, both firms will also sign distribution agreement to provide BlackRock asset management products to Citibanamex clients in Mexico.
Citi Latin America CEO Jane Fraser said: “Our goal is to create a state-of-the-art bank in Mexico focused on delivering a richer, smarter, more intuitive experience to everyone who does business with Citibanamex.”
BlackRock Americas region head Mark McCombe said: “BlackRock believes in the long-term growth potential of Mexico and is committed to continue growing our presence here.
“Combining BlackRock’s capabilities in product and technology with the distribution network of Citibanamex creates a stronger franchise that can do more for clients.”
Citi provides a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
With around 200 million customer accounts, Citi carries out operations in more than 160 countries and jurisdictions.
Image: BlackRock headquarters in Midtown Manhattan, New York City. Photo: courtesy of Americasroof.
