Citigroup to spin off its Mexico business, Banamex, after sale efforts collapse

In this article

Jane Fraser, chief executive officer of Citigroup Inc., during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” at the Economic Club of Washington in Washington, DC, US, on Wednesday, March 22, 2023. 
Valerie Plesch | Bloomberg | Getty Images

Citigroup announced Wednesday it plans to pursue an initial public offering of its Mexico business, Banamex, making formal a long-telegraphed spinoff.

The bank expects to complete the separation in the second half of 2024, with a public offering likely to follow in 2025, it said. The company hasn’t yet decided on a listing destination, but a dual listing in Mexico and the U.S. could be possible, a source familiar with the plans told CNBC.

“After careful consideration, we concluded the optimal path to maximizing the value of Banamex for our shareholders and advancing our goal to simplify our firm is to pivot from our dual path approach to focus solely on an IPO of the business,” CEO Jane Fraser said in a press release.

Citigroup had been exploring a potential sale of the business. Media reports as recent as this month said a deal was close to being finalized at a valuation of roughly $7 billion.

Citigroup bought Banamex for $12.5 billion in 2001. The bank first said in 2022 that it would be exiting the business, which operates about 1,300 branches with more than 12 million retail clients and about 10 million pension fund customers. It counts approximately 38,000 employees.

The company also said Wednesday it would resume share buybacks this quarter. Shares of Citigroup fell nearly 2% in premarket trading Wednesday.

— CNBC’s Leslie Picker contributed to this report.

This is breaking news. Please check back for updates.

Business

Products You May Like

Articles You May Like

California Democrat who opposed anti-tech bills is top contender for key role on antitrust subcommittee
Diamond Sports must pay four MLB teams in full, bankruptcy judge says
Apple’s entry into VR with its new headset is a ‘watershed moment,’ say top industry execs
Movistar’s Maria Valenzuela On Reinventing The Thriller Genre, The Next Stage Of Distribution & The Writers Strike
Broadway’s Tony-Nominated ‘Shucked’ Sets 2024 London Run In A Cameron Mackintosh Venue

Leave a Reply

Your email address will not be published. Required fields are marked *