Deutsche Bank, the German-based banking giant, is planning to scrap an agreement with Accendo Banco to divest its Mexican subsidiaries, without elaborating the reasons of the decision.
The transaction was originally announced in late 2016 with Accendo Banco, which was operating as InvestaBank at the time, reported Reuters.
As part of its Strategy 2020 to rationalise its operations across the globe, Deutsche Bank signed an agreement to offload Deutsche Bank Mexico, S.A. Institucion de Banca Multiple and Deutsche Securities, S.A. de C.V., Casa de Bolsa.
However, the transaction faced uncertainty when the news surfaced that the US had arrested one of the major shareholders of Accendo Banco over charges of fraud and laundering over $100m.
Deutsche Bank was quoted by the news agency as saying that: “We will continue to keep the best interests of our employees and clients in mind as we consider alternative options.”
However, Accendo said that the bank did not agree with the suspension of the deal and was still evaluating its options.
In 2017, the Mexican banking watchdog cleared the bank of misconduct related to the US charges, and allowed the acquisition to go ahead, however, the bank was fined $1.3m for minor violations.