Citigroup has agreed to sell another large stake in its Mexican banking unit, Banamex. The move is part of Citi’s plan to fully separate from the retail bank in Mexico.
Citi is selling a 24 percent stake in Banamex. The deal is worth $2.5 billion. This marks another step before the bank is expected to launch an initial public offering, also known as an IPO. An IPO allows a company to sell shares to the public on the stock market.
The buyers include several well-known global investment firms. Among them are General Atlantic, Banco BTG Pactual, and funds managed by Blackstone. Other investors in the deal include Liberty Strategic Capital and the Qatar Investment Authority.
Each investor is allowed to buy no more than 4.9 percent of Banamex. This means ownership will be spread out among different groups rather than concentrated in one single buyer.
The sale price suggests that Banamex is valued at about 0.85 times its local book value. Book value is a way banks measure their financial worth by looking at assets and liabilities.
The transaction still needs approval from antitrust regulators in Mexico. Citi expects the deal to be completed later this year once approvals are received.
Part of Citi’s Plan to Exit Retail Banking Outside the US
The sale of the Banamex stake is part of a larger strategy by Citigroup to exit retail banking operations outside the United States. Retail banking includes services such as savings accounts, credit cards, and personal loans for everyday customers.
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Banamex has been part of Citi for nearly 25 years. Over that time, it became one of the most well-known banks in Mexico. Now, Citi is working toward a full separation from the business.
Last year, Citi sold a 25 percent stake in Banamex to Mexican financier Fernando Chico Pardo, who serves as Chair of the Board of Banamex and is its largest individual private shareholder. With this latest 24 percent sale, Citi will have sold nearly half of Banamex once all transactions are finalized.
Citi’s International Head, Ernesto Torres Cantú, said the bank is honored to have the backing of these investors as it prepares for Banamex’s proposed IPO.
Citi has said it does not expect to sell additional shares in 2026. The reason is to give the new investors time to focus on building value in Banamex before the IPO takes place.
The IPO is expected to allow Citi to list its remaining stake in Banamex on the public market. This would mark one of the final steps in Citi’s exit from the Mexican retail banking business.
Broader Restructuring and Global Sales
The Banamex sale is happening during a major restructuring at Citigroup. The company is nearing the end of a large overhaul led by its Chief Executive Officer, Jane Fraser, aimed at simplifying its operations.
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As part of this restructuring, Citi expects to have reduced its workforce by about 20,000 jobs by the end of this year. The changes are designed to streamline the bank’s structure and focus on key areas of business.
Citi has also been selling other international businesses. Last year, it agreed to sell its Polish operations to VeloBank. It also reached an agreement to sell its Russian subsidiary to Moscow-based investment bank Renaissance Capital.
These moves show a clear pattern. Citi is pulling back from several international retail markets and focusing on fewer regions.
The sale of the 24 percent stake in Banamex marks another important step in this process. Once completed, nearly half of Banamex will have been sold to outside investors. The remaining shares are expected to be prepared for a public listing.
For Banamex, the deal brings in major global investors ahead of its planned IPO. For Citi, it represents steady progress in reshaping its global business.
The transaction remains subject to regulatory approval in Mexico. Citi has stated that it expects the process to move forward this year once the necessary clearances are obtained.
The $2.5 billion stake sale underlines the scale of the change taking place. After nearly 25 years of ownership, Citi is steadily moving toward a full exit from Banamex, one of Mexico’s most recognized retail banks.