FX.co ★ Citigroup Completes Separation Of Banamex

Citigroup Inc. announced that it has finalized the separation of Banamex from its institutional banking operations in Mexico. This move has resulted in the formation of two distinct financial entities in the country: Grupo Financiero Citi México and Grupo Financiero Banamex.

Citi plans to proceed with the initial public offering of Grupo Financiero Banamex, a process that will be dependent on regulatory approvals and prevailing market conditions to enhance shareholder value.

Jane Fraser, CEO of Citi, remarked that the separation marks a significant step in Citi's strategic simplification, aligning with their long-term objective to create a more interconnected bank centered on its fundamental strengths. Fraser emphasized their commitment to Mexican clients and the continuous global connectivity provided through Citi's premier investor and corporate client platforms. The preparation for the Banamex IPO remains focused on maximizing shareholder value.

Ernesto Torres Cantú, Head of Citi International, highlighted Citi's long-standing presence in Mexico for nearly a century, reinforcing its position as one of the bank’s most crucial institutional markets. He credited the successful separation to the dedication and professionalism demonstrated by the teams at Banamex and Citi over the past three years. Torres Cantú expressed gratitude to Mexican financial authorities for their support and to colleagues for their relentless effort in achieving this milestone.

Citi is considering a dual stock listing for Banamex, potentially on exchanges in Mexico City and New York. Previously, the bank disclosed plans to list the Banamex unit, which serves approximately 20 million clients and operates a network of around 1,300 branches across Mexico, by 2025.