Citi has agreed to sell another 24%, or 499 million shares, of its Mexico retail-banking unit for roughly $2.5 billion, the lender said Monday.
Private-equity firm General Atlantic, Brazilian bank BTG Pactual and insurance giant Chubb are among the buyers. Funds managed by Blackstone, Liberty Strategic Capital and Qatar Investment Authority have also taken stakes, as has Afore Sura, the Mexican pension fund of Colombia-based Sura Asset Management.
Citi did not specify how large a stake each investor bought but said none is more than 4.9%.
The transactions are expected to close by the end of this year, pending antitrust regulatory approval in Mexico, Citi said.
Outgoing Citi CFO Mark Mason noted during a quarterly earnings call in January that the bank was considering additional stake sales in Banamex.
The bank said Monday it does not anticipate selling any more pieces of its Mexican retail operations in 2026, adding that it wants to give the current investors time to boost value.
“We are honored to have the backing of these buyers as we prepare for Banamex’s proposed initial public offering,” Ernesto Torres Cantú, head of international at Citi, said in a statement. “Their investment is a further endorsement of Banamex’s long-term strategy, market leadership and growth prospects, and their commitment solidifies Banamex’s foundational position within Mexico’s banking system.”
Citi has planned, since at least 2022, to extricate itself from retail banking in Mexico – one of more than a dozen markets it has sought to leave during CEO Jane Fraser’s tenure. Citi separated its Mexico institutional banking operations from Banamex in late 2024, and has long eyed 2026 as the timeline by which it wants to launch Banamex’s IPO.
The bank said Monday, however, that the timing and structure of the IPO and any additional sales will be guided by financial considerations, market conditions, receipt of regulatory approvals and other factors.
Even after the latest sales, Citi would still hold a majority (51%) of Banamex. The bank sold an initial 25% stake in Banamex to Mexican billionaire Fernando Chico Pardo. The stake sale closed in less than three months – well ahead of expectation but not without drama. Citi in October rejected a $9.3 billion bid from mining and transportation conglomerate Grupo Mexico to buy Banamex in full – challenging Chico Pardo’s offer.
Citi bought Banamex in 2001 for $12.5 billion and has tried to recoup as much of its investment as possible. The stake now owned by Chico Pardo sold for $2.3 billion.
Monday’s investors bought their stakes at 0.85 times book value – above the 0.8 times Chico Pardo paid.
The acquisition stands as General Atlantic’s largest growth equity investment in Mexico to date, the private-equity firm said.
“We see Banamex as a foundational pillar of Mexico’s financial ecosystem, uniquely positioned to play a leading role in the country’s ongoing advancement and growth,” Luis Cervantes, a General Atlantic managing director, said in a statement seen by Bloomberg.
Citi said its exit from targeted international consumer banking is “near completion.” The bank last week completed the sale of its Russia operations to Renaissance Capital. Citi announced last May that it would sell its Polish consumer operations to VeloBank.
