Citigroup is discussing the offloading of stakes smaller than 5% each to a group of companies and Mexican family offices, including Blackstone Inc., General Atlantic among others, according to a Bloomberg News report.

  • With the latest deals, Citigroup will decrease its ownership in the business, while handing stakes to a major private equity firm and bank, as well as well-known Mexican executives, the report said. 
  • Citi last year agreed to sell a 25% stake in its Mexican retail banking unit, Banamex, for 42 billion pesos ($2.3 billion) to local businessman Fernando Chico Pardo.
  • Citigroup has been winding down or selling retail arms around the world in a bid to simplify the bank, but plans to keep a corporate banking unit and brokerage in Mexico.

Citigroup Inc. is nearing deals to sell an additional 24% of its Mexican retail bank to more than a dozen investors who are willing to bet on the business as Mexican billionaire Fernando Chico Pardo takes over.

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Citigroup is discussing the offloading of stakes smaller than 5% each to a group of companies and Mexican family offices, including Blackstone Inc., General Atlantic, the co-chief executive officers of Grupo Televisa SAB, Brazilian bank Banco BTG Pactual SA and Afore Sura, the Mexican pension fund of Colombia’s Sura Asset Management, Bloomberg News reported, citing people with knowledge of the matter.

With the latest deals, Citigroup will decrease its ownership in the business, while handing stakes to a major private equity firm and bank, as well as well-known Mexican executives, the report said. 

25% Deal Last Year

Citi last year agreed to sell a 25% stake in its Mexican retail banking unit, Banamex, for 42 billion pesos ($2.4 billion) to local businessman Fernando Chico Pardo.

The deal is expected to close in the second half of this year, after which Chico Pardo will become the chairperson of Banamex. The Mexican billionaire will be acquiring 520 million shares of the banking group, ahead of its planned listing.

Citi’s Attempts To Offload Banamex

Citi had first launched a sale of Banamex in 2022 as part of its strategy to simplify its business and exit the retail banking business in several international markets.

But the bank had to abandon its efforts after the former Mexican President, Andrés Manuel López Obrador, imposed restrictions on deal terms, which included the requirement that the buyer be Mexican and would not carry out mass layoffs.

Citigroup has been winding down or selling retail arms around the world in a bid to simplify the bank, but plans to keep a corporate banking unit and brokerage in Mexico.

How Did Stocktwits Users React?

Retail sentiment around C trended in ‘bearish’ territory amid ‘normal’ message volume. 

Shares in the company have risen nearly 38% over the past year. 

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