When was the intention to sell Banamex announced?
In January 2022, the American financial giant Citi announced its intention to sell Banamex in order to focus on the property business and the one that would leave the greatest number of benefits to shareholders.
Once the intention to sell was announced, the players who raised their hands for the purchase were Banorte, Santander, Inbursa, Banco Azteca, Grupo Mifel, businessman Javier Garza and Grupo México, owned by Germán Larrea.
After signing a series of strict confidentiality agreements, the interested parties accessed a data room that revealed the financial status of Citibanamex.
Since the sale was announced, then-president Andrés Manuel López Obrador said that Banamex should be left in the hands of Mexican businessmen. The president set a series of conditions for the future buyer. Among these requirements were that there were no debts with the SAT in the payment of taxes, that Mexican workers were not fired and that the historical and cultural heritage remained in the country for the enjoyment of its inhabitants.
However, the sales process could never be finalized.
Who bought Banamex?
At the end of September of this year, it was announced that businessman Fernando Chico Pardo acquired 25% of Grupo Financiero Banamex in an operation estimated at 42,000 million pesos and equivalent to 520 million shares.
“This investment from Fernando Chico Pardo, one of the most respected business leaders in Mexico, is a resounding endorsement of the strength and potential of Banamex,” said Jane Fraser, CEO of Citi.
The American banker highlighted that Banamex has long been “a cornerstone of the Mexican financial system.”
How big is Banamex?
Banamex is the fourth largest financial group in Mexico by total assets: it has more than 1,300 branches, around 9,000 ATMs, nearly 13.6 million Consumer Banking clients, more than 6,000 Business Banking clients and 8.6 million Afore clients.
What will happen to the remaining 75%?
Citi has not officially said what plans it has for the rest of Banamex.
The owner of Grupo México, Germán Larrea, offered to buy the entire financial group, but Citi declined the offer.
Among the options Citi has would be to place another part of the business on the Stock Exchange or look for a new buyer for another part of the group.
“With the acquisition of a 25% stake in Banamex, Fernando Chico Pardo assumes the presidency, marking a milestone in Citi’s divestment process. Banamex’s strong retail franchise, asset quality and capitalization remain intact. As Citi’s shareholding declines, the subsidiary’s support will be reduced, which is reflected in Moody’s negative outlook for the deposit ratings,” said Felipe Carvallo, Senior Vice President, Financial Institutions – Moody’s Ratings, in a report.
