Foreign Direct Investment in Mexico: Acquisition of Banamex by Citigroup

Abstract

The financial and banking services sector has always been one of the most important in the world economy, in Mexico 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 since the opening trade economic policy of Mexico. The increase in FDI inflows to Mexico have been marked since the entry of NAFTA and one of the most important acquisitions of Mexican companies has been Banamex bought by the US global corporate CitiGroup. This work shows that in addition to having contributed to one of the most important amounts in the history of receiving FDI by Mexico, the acquisition of Banamex allowed competition in the financial sector and the entry of new competitor into the industry.

Keywords: Foreign direct investment, FDI, financial sector, acquisitions

JEL Classification: F210; F230; G200