Grupo Mexico revives bid for Citi’s Banamex amidst IPO plans

Mexican mining and transportation conglomerate Grupo Mexico has reintroduced its bid to acquire Citigroup's retail banking unit in Mexico, Banamex, more than two years after a previous offer was withdrawn due to political tensions. The company, led by billionaire German Larrea, submitted the proposal on Friday, expressing its "unwavering confidence" in Mexico's economic prospects. In a filing, Grupo Mexico stated that acquiring Banamex would enhance the bank's competitiveness in the market.

Under the new offer, Grupo Mexico proposes to purchase 25% of Banamex at 0.85 times its book value and the remaining 75% at 0.80 times its book value. This valuation comes after billionaire Fernando Chico Pardo secured a 25% stake in Banamex for approximately $2.3 billion, setting a pricing benchmark for a potential initial public offering (IPO) of the remaining shares.

Citigroup has confirmed that it has not yet received Grupo Mexico's offer. The bank reiterated its preference for selling a 25% stake to Chico Pardo and pursuing an IPO for the remaining shares, a strategy it believes will maximize value for stakeholders.