Citigroup Inc (NYSE:C) has announced plans for an initial public offering (IPO) of its retail banking business in Mexico, having previously followed a two-stage exit process including a trade sale to increase value for its shareholders.
The U.S. bank said it will retain the Banco Nacional de México (Banamex) institutional business, with the IPO including the consumer, small business and mid-market businesses and the Banamex brand.
Banamex will remain one of the leading financial groups in Mexico, offering a full range of financial services through its approximately 1,300 branches and 9,000 ATMs, Citi said, adding that the bank has about 12.7 million retail customers, 6,600 business customers and 10 million pension customers.
“After careful consideration, we have determined that the best way to maximize the value of Banamex to our shareholders and to continue our goal of simplifying our business is to move away from our two-pronged approach and focus solely on an IPO company,” said Jane Fraser, CEO of Citi, in a statement.
“Citi has been operating in Mexico for over a century and we will continue to invest and grow our industry-leading institutional franchise in this important global hub to bring the full power of Citi’s global network to our institutional and retail banking clients in this priority market. “ ”
Citi said it will continue to operate a locally licensed banking operation in Mexico through its Institutional Clients Group (ICG), which provides banking and advisory services to private and public institutions, clients and investors in the financial sector, and through Citi Private Bank High Net Worth individuals and families.
The separation of businesses is expected to be completed in the second half of 2024, with the IPO following in 2025.
Earlier, Reuters reported that the Mexican government was ready to buy Banamex, citing a government statement issued Tuesday, following rumors that one of the bidders for the bank, Grupo Mexico’s owner German Larrea, was selling due to a dispute with the government had withdrawn from the procedure.
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