Citigroup last year announced that it was looking to divest the consumer banking, small business and midsize business divisions in Mexico, while holding on to the institutional operation.
Several bidders have been competing for Banamex for months. Investors are closely watching the lender’s progress on the divestment because the New York-based firm has said any potential deals will temporarily affect capital levels. That has prompted the bank to postpone the restart of share buybacks in recent quarters.
Citigroup executives have long stressed that they were exploring both an initial public offering and a sale for the unit, which is part of CEO Jane Fraser, of divesting more than a dozen international consumer divisions to refocus Citigroup on institutional offerings and the firm’s retail business in the United States.
Representatives for Citigroup and Grupo México, the conglomerate run by mining magnate Germán Larrea, declined to comment.
