Mexican Bank to Expand in Southland
Valley Bank of Moreno Valley, a four-branch Inland Empire financial institution, agreed Tuesday to be acquired by BBVA Bancomer, Mexico’s largest bank, for about $16.7 million in cash.
The purchase, expected to close in the third quarter, “is a pilot program” as Bancomer looks to expand in the U.S., said Bancomer spokeswoman Julissa Bonfante.
Bancomer, a subsidiary of Banco Bilbao Vizcaya Argentaria, Spain’s second-largest bank, will pay $5.48 per share for Valley stock, which trades over the counter. That’s a 19% premium over the last time the shares changed hands, at $4.60 on May 13.
Bancomer was attracted by Valley’s mix of mortgage, construction and small-business lending, its many Latino customers, and its location in a growing area, Valley Chief Executive Gene Wood said. The bank has branches in Grand Terrace, Perris, Moreno Valley and Woodcrest; a construction loan center in Moreno Valley; and a mortgage office in Fontana.
U.S. banks such as Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. have been battling to provide services to Latino immigrants.
In 2001, Citigroup bought Grupo Financiero Banamex-Accival, parent of Banamex, Mexico’s largest bank.
Puerto Rican bank Popular Inc. opened a counteroffensive of sorts in March, agreeing to pay $367 million for Quaker City Bancorp, a Whittier savings and loan with 16 of its 27 branches inside Wal-Mart stores.
