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Citi's Mexico unit set to split off by late 2024 -local media

Credit: REUTERS/Brendan McDermid

Updates with additional detail, context

MEXICO CITY, Dec 14 (Reuters) - Citigroup's C.N Mexico retail unit, known as Banamex, is set to split off from its parent by the second half of 2024, the lender's Mexico head Manuel Romo told local media on Thursday.

The retail unit should then begin the process of going public in 2025, Romo said. The offering could take place in Mexico or another country, he added.

Earlier this year, Citi scrapped the $7 billion sale of the unit, surprising investors.

New York-based Citi had been in talks with Mexican billionaire German Larrea's Grupo Mexico GMEXICOB.MXto sell the unit, with sources telling Reuters the two sides had been close to a deal.

The Mexican government's interference in Grupo Mexico's operations - expropriating part of one of the company's rail lines - and demands regarding the sale led the two sides to abandon the deal, sources said.

After the sale fell through, Citi said it would list Banamex.

Citi's corporate and investment banking operation will remain in the country under the name Citi Mexico.

"We're making progress in a timely manner in the separation," Romo said. "So that by the second half of 2024, the split between Banamex and Citi Mexico is complete," he added.

(Reporting by Kylie Madry; Editing by Sarah Morland)

((Kylie.Madry@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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