CEO of Citigroup visits Mexico during talks for a Banamex stake

As reported by Bloomberg News on Monday, Citigroup CEO Jane Fraser is in Mexico City for discussions with President Claudia Sheinbaum, which involve the potential IPO of Banamex’s retail unit, according to sources familiar with the situation.

The report could not be independently verified by Reuters. Citigroup did not provide an immediate response to Reuters’ request for comment.

During a call in July, Fraser informed analysts that the New York-based bank is set to carry out an initial public offering (IPO) for its Mexican unit, Banamex, before the year concludes.

The report indicates that Citi has been seeking to attract affluent Mexicans to invest in Banamex, with the possibility of their stake becoming a controlling interest. Furthermore, reports indicate that Mexican entrepreneur Fernando Chico Pardo is interested in acquiring around 20% of Citi’s Banamex division ahead of its IPO.

After tensions between the group and then-President Andrés Manuel López Obrador escalated, Citi canceled its sale of $7 billion worth of its consumer unit in Mexico to Mexican billionaire Germán Larrea’s Grupo México conglomerate in 2023.