Mexico Considers Benefits of Buying Banamex, Considers Synergies with State Bank
Business and financeOffers
May 31, 2023, 5:45 p.m. 1 minute
Reuters exclusively revealed that Mexico is assessing whether buying the Mexican consumer unit of Citigroup Inc (CN) would help drive financial inclusion, potentially in combination with a state-owned bank such as Banco del Bienestar. US lender Citigroup scrapped the sale of the Banamex unit last week and said it would put it up for sale instead, a surprise move coming amid talks to sell the business to Mexican billionaire conglomerate Grupo Mexico German Larrea (GMEXICOB.MX).
Market Impact
After Citi announced its IPO plans, Chairman Andres Manuel Lopez Obrador said the government could acquire up to half of Banamex. Before Citi U-turnbanking sources said Grupo Mexico had been eyeing the unit for about $7 billion. Banamex will continue to be reported as part of Citi’s continuing operations until ownership falls below a 50% voting interest, in which case the business will be deconsolidated.
Article tags
Topics of interest: Business and financeOffers
Type: Best Reuters
Sectors: Business and finance
Regions: Americas
Countries: Mexico
Types of victory: Exclusivity
Types of story: Exclusive / Scoop
Media Types: Text
Customer impact: Significant national history
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