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Citi Advances Chico Pardo’s 25% Banamex Deal as Regulatory Review Begins, IPO to Follow

Citi signals confidence from government backing, expects approval in 9–12 months, reports sizable one-time charges.

Overview

  • Citi CEO Jane Fraser said Fernando Chico Pardo filed this week for regulatory approval to acquire 25% of Banamex, a step she called pivotal to Citi’s full exit.
  • The bank reiterated that an initial public offering will take place after the 25% sale closes, aligning with its plan to deconsolidate Banamex.
  • Fraser noted public support from President Claudia Sheinbaum’s government, which Citi says increases certainty around completing the transaction.
  • CFO Mark Mason disclosed an approximately $9 billion accumulated currency translation adjustment moving to net loss and a $726 million loss tied to the 25% sale, even as Citi’s Q3 net income rose 16%.
  • Grupo México confirmed Citi rejected its proposal to buy 100% of Banamex; the conglomerate said its bid met regulatory criteria and lamented the decision.