Citigroup plans IPO for Mexican retail banking unitwritten by Bella Palmer
The lender declared Wednesday it plans to pursue an Initial Public Offering for Banamex, after leaving the consumer banking market in Mexico last year
Citigroup has said it has decided to take its Mexican retail banking unit Banamex public.
The lender declared Wednesday it plans to pursue an Initial Public Offering for Banamex, after leaving the consumer banking market in Mexico last year.
Following careful contemplation, we concluded the optimal way to optimising Banamex’s value for our shareholders and advancing our aim to simplify our company is to pivot from our dual way approach to focus exclusively on an Initial Public Offering of the business, Chief Executive Officer Jane Fraser stated in a PR.
A report Wednesday by The Wall Street Journal notes that Citi’s endeavours to sell the bank were complicated by Mexican President Andrés Manuel López Obrador, who had stated he would need any deal to include worker safeguards, taxes and guarantees that Citi’s collection of Mexican artwork would stay in Mexico.
As per The Wall Street Journal, Orbrador stated Tuesday that his administration was contemplating bidding for Banamex in case a deal with Mexican businessman German Larrea did not take place.
The lender stated Wednesday that Banamex will keep credit cards, retail banking, consumer loans, residential mortgage lending, insurance, annuities, pension assets management, deposits and commercial banking products.
The nearly 38,000 employees presently assisting these businesses, as well as Banamex’s art collection and historical buildings, will continue to be part of Banamex, the firm said in a news release.
The lender stated it will continue to manage a locally licensed banking business in Mexico via its Institutional Clients Group, which provides a network of banking and advisory services to private and public institutions, financial sector clients and investors.
Citi has been pursuing the carve out of the Institutional Clients Group business since declaring its plan to separate Banamex, it stated. This work, including securing the required regulatory consent, is in progress. It anticipates that the separation of the businesses will be achieved in H2 of 2024 and that the Initial Public Offering will take place in 2025.
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