Citigroup's Mexican Arm Banamex To Go Public In 2025, Following Corporate Separation: Report

Citigroup, Inc. C is reportedly separating its Mexico retail unit, known as Banamex, from its corporate and investment banking business in the nation by the second half of 2024.

The retail unit will start the process of going public in 2025, according to a news report by Reuters, citing the lender's Mexico head Manuel Romo.

Earlier in the year, Citi unexpectedly called off a $7 billion sale of the unit, catching investors off guard, the report read.

Citi was negotiating with Mexican billionaire German Larrea's Grupo Mexico to divest the unit. Sources informed Reuters that the parties were nearing an agreement.

However, the deal between Grupo Mexico and Citi was abandoned due to the Mexican government's involvement in Grupo Mexico's activities, including the expropriation of a portion of the company's railway line, and specific demands made concerning the sale, the Reuters report read.

"We're making progress in a timely manner in the separation," Romo said in a speech, which Reuters noted. "So that by the second half of 2024, the split between Banamex and Citi Mexico is complete," he added.

In May, certain anonymous sources informed Reuters that the bank was considering a dual stock listing, potentially in both Mexico and New York, as per the report.

Read Next: Why Chinese EV Behemoth NIO Shares Are Rising Today

Price Action: C shares are trading lower by 1.52% to $49.48 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.