Written by Tatiana Butzer
New York (Reuters) -Citigroup agreed to sell a 25 % stake in Grupo Fanymiero Banmex to a company owned by Mexican billionaire Fernando Chico Bardo and his family, which represents a step towards City’s plan to take public unity.
The bank said in a file that the sale, which is valued at 42 billion Mexican pesos ($ 2.28 billion), is expected to be closed in the second half of 2026.
The Banamex deal is estimated at $ 9.12 billion at the current foreign exchange rate. Citigroup banamex bought a $ 12.5 billion in a deal in 2001, while a source familiar with the matter said that the company has more companies than it has.
The deal comes after a difficult period for three years, as the bank struggled to find an investor or a preparation. The deal also represents the last step in City’s retreat from Latin America, where the bank was one day a player in retail banking services in Brazil, Argentina and Colombia.
The last sales process has weakened fame – it is usually recorded when the original is sold less than the price that was booked at a price of $ 726 million for Citigroup, which will be recorded as expenses in the third quarter.
“The market was looking to strip as possible as a decent evaluation. This is very decent,” said Soriansh Charma, an analyst at Mooringstar Research Services.
Bardo, 73, will become the head of Grupo Financiero Banamex after selling. Manuel Romo will remain the CEO of Banamex.
“Investing from Fernando Chico Bardo, one of the most respectable business leaders in Mexico, is a resounding approval of the Panamix power and its capabilities,” said Jin Fraser, CEO of CITI.
Fraser said that Citigroup is working on the initial general assumption of Banamex to achieve its full value, noting that the timing is subject to regulatory approvals and market conditions.
Banamex is the last stripping process of banking consumers in the Fraser Simplification plan announced in 2021. At that time, the bank committed to stripping 14 markets across Asia, Europe, the Middle East and Mexico.
The Sandler Sandler analysts, led by Scott Sefars, said in a note that the Mexican unit separation represents the last major element in the City Group simplification list.
“We look at this evening news positively and we expect the stock to interact well,” the note said.
Citigroup shares increased by 44 % on an annual basis, outperforming the S&P 500 Bank, which has increased by 23 % so far this year.
In the wealthiest eighth Mexico
Forbes Bardo classified as the best person in Mexico in May, and lists his net value of $ 3.5 billion as of Wednesday, supported by his majority in Grupo Aeroportuario Del Sureste (ASUR), an international airport operator. His career was launched at the age of 27 when he established stock mediation, which later became part of the Carlos Slim’s Inbursa Financial Group.
https://media.zenfs.com/en/reuters-finance.com/044ae58ec419829676b0b64b99215388
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