Citigroup will spin off its operations in Mexico through an IPO
- Citigroup announced Wednesday that it plans to pursue an initial public offering of its Mexico business, Banamex, formalizing a long-telegraphed spinoff.
- The bank expects to complete the separation in the second half of 2024, with a public offering likely to follow in 2025, it said.
Jane Fraser, CEO of Citigroup Inc., during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” at the Economic Club of Washington in Washington, DC, U.S., Wednesday, March 22, 2023.
Valerie Plesch | Bloomberg | Getty Images
Citigroup announced Wednesday that it plans to pursue an initial public offering of its Mexico business, Banamex, formalizing a long-telegraphed spinoff.
The bank expects to complete the separation in the second half of 2024, with a public offering likely to follow in 2025, it said. The company has not yet decided on a listing destination, but a dual listing in Mexico and the United States could be possible, a source familiar with the plans told CNBC.
“After careful consideration, we concluded the optimal path to maximize the value of Banamex for our shareholders and advance our goal of simplifying our firm is to pivot from our two-pronged approach to focus solely on an IPO of the business,” said CEO Jane Phrases in a press release.
Citigroup bought Banamex for $12.5 billion in 2001. The bank only said in 2022 that it would exit the business, which operates about 1,300 branches with more than 12 million retail customers and about 10 million pension fund customers. It has approximately 38,000 employees.
Shares in Citigroup fell about 1% in premarket trading on Wednesday.
– CNBC Leslie Picker contributed to this report.
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