Grupo México Submits Binding Bid to Acquire Citi's Banamex for MX$160 Billion

Grupo México, led by billionaire Germán Larrea, has renewed its binding offer to acquire 100% of Citigroup's retail banking unit in Mexico, Banamex, proposing to buy 25% of the bank at 0.85 times book value and the remaining 75% at 0.80 times. This offer follows a recent 25% stake acquisition by Mexican billionaire Fernando Chico Pardo for $2.3 billion, which set a pricing benchmark for a potential IPO of the remaining shares. Grupo México emphasized its commitment to maintaining majority Mexican ownership, ensuring continuity of services, and preserving Banamex's historic assets. The deal is valued at approximately $8.7 billion and is under negotiation at Citigroup's New York headquarters, although Citigroup has not yet formally received Grupo México's offer and remains focused on a strategy involving Chico Pardo's stake and an IPO. Grupo México's renewed bid comes after previous negotiations were halted due to political tensions, reflecting the conglomerate's strong confidence in Mexico's economic prospects and the potential to improve Banamex's competitive position. The outcome of these negotiations could significantly impact the Mexican banking sector's competitive landscape.