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Citi rejects investor buy-out bid as Banamex IPO remains plan for Mexican business
Citigroup Inc. has rejected a takeover approach from Grupo México for its Mexican banking arm Banamex, reaffirming that it intends to divest the business via an initial public offering (IPO) instead. The bank recently sold a 25% stake in Banamex to financier Fernando Chico Pardo for about US$2.3 billion to help pave the way for the listing. The continued preference for an IPO route instead of outright sale signals Citigroup’s strategy to maximise shareholder value while completing its scheduled exit from non-US retail operations.
Execution risks in the Mexican regulatory environment remain elevated.
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neutral
Citi rejects investor buy-out bid as Banamex IPO remains plan for Mexican business
Citigroup Inc. has rejected a takeover approach from Grupo México for its Mexican banking arm Banamex, reaffirming that it intends to divest the business via an initial public offering (IPO) instead. The bank recently sold a 25% stake in Banamex to financier Fernando Chico Pardo for about US$2.3 billion to help pave the way for the listing. The continued preference for an IPO route instead of outright sale signals Citigroup’s strategy to maximise shareholder value while completing its scheduled exit from non-US retail operations.
Execution risks in the Mexican regulatory environment remain elevated.
Explore:Mutual Fund Categories
1 min read
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Citigroup declines Grupo México’s takeover bid for Banamex, sticking with IPO strategy and boosting value for shareholders.
Citigroup Inc. has rejected a takeover approach from Grupo México for its Mexican banking arm Banamex, reaffirming that it intends to divest the business via an initial public offering (IPO) instead. The bank recently sold a 25% stake in Banamex to financier Fernando Chico Pardo for about US$2.3 billion to help pave the way for the listing. The continued preference for an IPO route instead of outright sale signals Citigroup’s strategy to maximise shareholder value while completing its scheduled exit from non-US retail operations.
Execution risks in the Mexican regulatory environment remain elevated.
Citigroup Inc. has rejected a takeover approach from Grupo México for its Mexican banking arm Banamex, reaffirming that it intends to divest the business via an initial public offering (IPO) instead. The bank recently sold a 25% stake in Banamex to financier Fernando Chico Pardo for about US$2.3 billion to help pave the way for the listing. The continued preference for an IPO route instead of outright sale signals Citigroup’s strategy to maximise shareholder value while completing its scheduled exit from non-US retail operations.
Execution risks in the Mexican regulatory environment remain elevated.
Companies:
Citigroup Inc.
Banamex
Tags:
IPO
banking
IPO
banking
Mexico
Citigroup
divestment