Banco Santander Sets Strict Guardrails for Potential Mexico Deal

(Bloomberg) -- Ana Botin, the chair of Banco Santander SA, called Mexico a “growth engine” for the bank but cautioned that the lender would only seek to buy Citigroup Inc.'s retail business in the country if certain requirements are met.

“I want to be very clear, we will only buy Banamex if we can pay cash,” Botin said Monday in an interview on Bloomberg Television's “Balance of Power With David Westin.”

“We would not issue shares at the group nor at the Mexican subsidiary level,” she said. “We can keep our CET1 at 12% or above, and very important, we keep the dividend policy we have announced.”

Read more: Santander Is Said Among Potential Suitors for Citi's Mexico Unit

Citigroup has put a variety of international businesses up for sale as Chief Executive Officer Jane Fraser reshapes the U.S.-based bank. Botin has previously said that Santander would look at the Citigroup business. She cautioned Monday that the lender would do fine in Mexico even without a potential acquisition, noting that Santander has gained market share in that business on the retail side for every month in the last 22 months.

“Mexico is a growth engine for Santander,” Botin said. “There's a lot of organic growth for us in Mexico without buying Banamex.”

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