By Brazil Stock Guide –Citigroup Inc. (C) is close to selling an additional 24% stake in its Mexican retail unit Banamex to a group of investors, as part of its ongoing effort to scale back its consumer banking footprint in the country. The move comes as Mexican billionaire Fernando Chico Pardo increases his influence over the lender.
According to Bloomberg, the US bank is negotiating the sale of stakes of less than 5% each to more than a dozen buyers, including private equity firms, banks and Mexican family offices.
Investors cited by people familiar with the matter include Blackstone Inc. (BX), General Atlantic, the co-CEOs of Grupo Televisa SAB (TLEVICPO MM), Banco BTG Pactual SA (BPAC11 BZ) and Afore Sura, the Mexican pension fund controlled by Sura Asset Management. The people requested anonymity because the discussions are private.
Representatives for Citigroup, Banamex, General Atlantic, Blackstone and BTG declined to comment. A representative for Sura did not immediately respond to requests for comment.
The transaction is part of Chief Executive Officer Jane Fraser’s strategy to simplify Citigroup’s global operations and reduce exposure to international consumer banking. Last year, Citi sold a 25% stake in Banamex to Chico Pardo, marking a significant step toward exiting the business.
Citi has also been considering an initial public offering of Banamex as it seeks a full separation from the Mexican retail unit. The sale of minority stakes ahead of a potential IPO forms part of that broader plan.
Upon completion of the new round of sales, Citigroup will further reduce its ownership in Banamex while retaining its corporate and investment banking operations in Mexico, in line with its global restructuring strategy.