Argentine fintech Ualá to buy Mexican bank ABC Capital

Argentine financial technology company Ualá has agreed to buy a 100% stake in Mexico-based bank ABC Capital SA Institución de Banca Múltiple for an undisclosed amount, Bloomberg News reported, citing CEO Pierpaolo Barbieri.

The deal, which is subject to regulatory approval in Mexico, will result in ABC Capital's current shareholders becoming minority shareholders in Ualá.

The transaction will allow Ualá to accelerate its growth in the Mexican market and offer a different set of financial services, according to Barbieri. The deal will grant Ualá, which has been operating in Mexico since September 2020, access to ABC Capital's bank license.

Ualá, which offers financial products through a mobile app, has reached $2.5 billion valuation in its last financing round. The company earlier struck a deal to acquire Argentine digital bank Wilobank SA.