Mexico’s Grupo Financiero Banorte has entered in an agreement to merge its pension fund with Afore XXI, the fund 50% owned by the Instituto Mexicano del Seguro Social (IMSS), Bloomberg reports. Under the deal, IMSS will acquire the 49% stake in Banorte’s pension fund currently owned by Italy’s Assicurazioni Generali and another 1% from Banorte.
In addition, Banorte has also offered to acquire Prudential Financial’s 50% stake in Afore XXI. The agreement awaits approval from government regulators and the stakeholders. The Mexican financial institution did not disclose financial terms of the deal. The combined assets of Banorte and Afore XXI’s pension funds totaled $21.6 billion at the end of July, adds Pensions & Investments.
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