Banamex Dreams Crushed: Citigroup Says 'No gracias'
The Mexican government's interest in acquiring Banamex has fizzled out as Citigroup takes a different route. While Citigroup postponed the stock exchange sale until 2025, Mexico's potential involvement raises questions about control and impact on the banking sector. The situation remains uncertain.
In a surprising twist of events, the Mexican government has announced that it is no longer interested in purchasing Banamex, the Mexican retail banking unit of Citigroup. This revelation came from presidential spokesman Jesús Ramírez, who stated that the U.S. bank had "chosen another path." The decision marks a significant departure from previous discussions between Citigroup and Mexican billionaire German Larrea's Grupo Mexico conglomerate, which had been in talks to acquire Banamex.
Citigroup had initially ruled out selling Banamex and instead opted for an initial stock offering, catching many off guard with this sudden change of plans. However, President Andrés Manuel López Obrador responded by suggesting that the government might consider a "public-private partnership" to acquire up to 50% of Banamex, with the state potentially contributing up to $3 billion. This signaled a potential shift in strategy, but Ramírez refrained from providing details regarding the path chosen by Citigroup.
