Citi eyes £6.6bn sale of Mexican bank Banamex in global retreat

CHRIS DORRELL

CITIGROUP is nearing the sale of its Mexican retail bank Banamex in a deal that would be worth $8bn (£6.6bn), the Financial Times reported, despite government interference scaring off potential bidders. According to three people familiar with the matter, the owner of Mexico’s largest mining company,

Germán Larrea Mota-Velasco, is in exclusive talks to purchase Banamex for between $6bn and $8bn.

This far below the $10bn predicted by some of the most bullish analysts. In January 2022, when Banamex was put for sale, Bank of America analysts suggested the “franchise could be worth $12.5bn to $15.5bn”.

There was also interest from Mexican bank Banca Mifel, with backing from private equity fund Apollo, but Citi chose to continue with Larrea, people familiar with the matter said. The deal has been fraught with political controversy after Mexican President López Obrador said he would prefer a domestic buyer for the bank when it was put on the market. Citi is retreating from international retail banking as part of a ‘strategic refresh’.