Reuters exclusively revealed that Mexico is evaluating whether buying Citigroup Inc’s (C.N) Mexican consumer unit would help boost financial inclusion, potentially in combination with a state-run bank such as the Banco del Bienestar. U.S. lender Citigroup scrapped its sale of the Banamex unit last week and said it will instead list it, a surprise move coming amid talks to sell the business to Mexican billionaire German Larrea’s conglomerate Grupo Mexico (GMEXICOB.MX).
Business & FinanceDeals
Mexico mulls benefits of Banamex purchase, eyes synergies with state bank
31 May 2023, 5:45 pm 1 minute
Market Impact
After Citi announced its IPO plans, President Andres Manuel Lopez Obrador said the government could acquire up to half of Banamex. Before Citi’s u-turn, banking sources said Grupo Mexico had been eyeing the unit for around $7 billion. Banamex will continue to be reported as part of Citi’s continuing operations until ownership falls below a 50% voting interest, at which point the business will be deconsolidated.
Article Tags
Topics of Interest: Business & FinanceDeals
Type: Reuters Best
Sectors: Business & Finance
Regions: Americas
Countries: Mexico
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story
