[1/2] The emblem of Banamex financial institution is on a department in Mexico Metropolis, Mexico, November 17, 2017. REUTERS/Henry Romero
Might 10 (Reuters) – Conglomerate Grupo Mexico (GMEXICOB.MX) is about to purchase Citigroup Inc’s (C.N) retail banking operations in Mexico for about $7 billion in a deal that could possibly be introduced as early as this week, in keeping with an individual aware of the matter.
As a part of the deal, Citi will retain a roughly 10% stake within the Banamex unit, the supply mentioned, requesting anonymity because the discussions are confidential.
Citi may select to promote the stake to Grupo Mexico, which is managed by billionaire German Larrea, or different potential patrons sooner or later, the supply mentioned. Another choice could possibly be to listing the stake on public markets, the supply added.
Reuters had reported in February that Grupo Mexico’s proposed deal for Banamex may worth it at $7 billion or extra.
Each Citi and Grupo Mexico declined to remark.
Citi introduced plans to dump the unit greater than a yr in the past as a part of an effort from Chief Government Jane Fraser to promote some worldwide operations to simplify its enterprise.
Over the previous yr, Citi has exited and offered some retail companies in a number of international locations throughout Asia and different elements of the world.
A number of different potential patrons, together with fellow Mexican billionaire Carlos Slim, dropped out of the public sale course of to purchase Banamex, in keeping with the supply.
The enterprise additionally attracted the curiosity of overseas opponents with operations in Mexico similar to Banco Santander (SAN.MC), the supply mentioned.
Bloomberg reported on talks advancing between Grupo Mexico and Banamex earlier on Wednesday.
Reporting by Andres Gonzalez in London, further reporting by David French, Saeed Azhar and Isabel Woodford; Modifying by Anirban Sen and Jamie Freed
: .