BlackRock agreed to acquire the asset management business of Citibanamex, a Mexico City-based subsidiary of Citigroup, said Jessica Greaney, BlackRock spokeswoman.
Terms of the deal, which is expected to close in the second half of 2018, are not being disclosed. Citibanamex Asset Management has about $31 billion in assets under management, about $9 billion of which is institutional. BlackRock Mexico, also based in Mexico City, currently also has about $31 billion in assets under management, of which about $23 billion is institutional. Ms. Greaney said in an email that "existing BlackRock and Citibanamex Asset Management products will be branded as BlackRock."
"BlackRock believes in the long-term growth potential of Mexico and is committed to continue growing our presence here," said Mark McCombe, BlackRock's head of the Americas region, in a joint news release from BlackRock and Citibanamex. "Combining BlackRock's capabilities in product and technology with the distribution network of Citibanamex creates a stronger franchise that can do more for clients."
By asset class, BlackRock Mexico's overall AUM is 68% equities, 28% fixed income, and 4% alternatives and commodities. Citibanamex Asset Management's overall AUM is 58% fixed income, 20% equities, 14% multiasset portfolios and the rest in direct investments.
"Our commitment is to deliver the best client experience by offering the best of Mexico, and bringing to them the best of the world. Our association with BlackRock does exactly that," said Ernesto Torres Cantu, CEO of Citibanamex, in the news release.