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1h ago

Citi Denies Receiving Larrea’s Banamex Offer as Grupo México Stock Tumbles

Citi continues to favor its 25% sale to Fernando Chico Pardo with a follow-on IPO.

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A Citibanamex branch in Mexico City, Mexico, on Friday, May 26, 2023. Citigroup Inc. plans to sell shares of its Banco Nacional de Mexico SA unit in an initial public offering, ending talks for a potential $7 billion divestiture to a local buyer in a deal that faced complications from Mexico's president.
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Overview

  • Germán Larrea said he submitted a proposal to acquire 100% of Grupo Financiero Banamex through Grupo México.
  • Citigroup said it has not received any proposal from Larrea so far and indicated it would review any formal submission.
  • Grupo México shares fell as much as about 20% on Monday, marking their sharpest intraday drop since 2008.
  • Larrea’s proposal was reported to value Banamex slightly above the roughly $9 billion level implied by the Chico Pardo arrangement.
  • The Chico Pardo deal drew a positive reception from the Sheinbaum government, a stance viewed as favorable for regulatory review.