2023-05-10 14:02:25 ET
- Citigroup ( NYSE: C ) is reportedly closing in on a deal to sell most of its Banamex retail operations to Grupo Mexico for ~$7B, as part of the New York-based bank's overall strategy to focus its consumer banking operations on a small number of wealth centers.
- The bank would keep part of the business, but will have to option to sell it later to Grupo Mexico or list it on public markets, Bloomberg reported Wednesday, citing people familiar with the matter.
- Several companies have been bidding on Banamex for months. Investors are keeping an eye on the divestiture, because Citi ( C ) has said any potential sale will temporarily hurt capital levels, Bloomberg reported .
- In February, the Financial Times had reported that Citi ( C ) was close to selling the Mexican bank in a transaction that could value it for as much as $8B.
- In September 2022, the bank said it would divest its Mexico consumer unit in 2023 through a sale or IPO .
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Citigroup nears deal to sell most of Banamex unit for $7B - report