(Bloomberg) — Mexican monetary authorities are near approving a proposal by billionaire Fernando Chico Pardo to purchase a 25% stake in Citigroup Inc.’s Mexican retail-banking unit, Banamex, paving the way in which to record the enterprise as quickly as subsequent yr.
The approval course of for Chico Pardo’s stake and his strategic plan for Banamex is in its ultimate phases, based on individuals aware of the matter who requested anonymity as a result of as a result of the method isn’t but ultimate.
When Citigroup agreed to the 42 billion-peso ($2.3 billion) provide from Chico Pardo in September, the financial institution stated the deal was anticipated to be accomplished within the second half of 2026 and was topic to customary closing situations, together with regulatory approvals in Mexico.
At an business convention this week, Citigroup Chief Monetary Officer Mark Mason stated progress was transferring alongside.
“I talked about subsequent yr,” Mason stated. “I can envision it closing even earlier than that.”
A Citigroup consultant declined to remark additional as did a spokesman for Chico Pardo. Mexico’s finance ministry didn’t instantly reply to a request for remark.
As soon as the federal government approval is in hand, Chico Pardo can signal the cope with Citigroup and switch cost for the stake, the individuals stated. He’ll additionally take over as chairman of the Mexican unit’s board.
Citigroup, which has been winding down or promoting a number of retail arms globally in a bid to simplify the financial institution, is looking for to promote smaller stakes of Banamex to different traders forward of the deliberate share providing.
Chico Pardo is the previous chief government officer of Carlos Slim’s Grupo Financiero Inbursa and founding father of personal fairness agency Promecap. He’s additionally a significant shareholder in Grupo Aeroportuario del Sureste, or Asur, which operates in southeast Mexico, house to vacationer sizzling spots together with Cancun. Chico Pardo, 73, has urged his sons will ultimately take a task in overseeing the funding within the financial institution.
Citigroup stated in 2022 that it could search to exit its retail-banking operations in Mexico. A cope with mining magnate German Larrea’s conglomerate, Grupo Mexico SAB, fell aside in 2023 on the final minute after interference by President Claudia Sheinbaum’s predecessor, Andres Manuel Lopez Obrador.
After Chico Pardo and Citigroup struck a deal earlier this yr, the New York-based lender rejected a competing provide from Grupo Mexico that sought to upstage Chico Pardo’s bid.
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