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28m ago

Grupo México Sets 10-Day Clock on Banamex Bid as Citi Sticks to Chico Pardo Deal

The miner detailed a plan to keep 60% of the bank and place 40% with local investors with limited new debt, even as Citi maintains that a 25% sale and an IPO remain its preferred exit.

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Overview

  • Grupo México asked Citigroup’s board to evaluate its proposal within 10 days and said it is seeking up to 100% of Banamex, with room for Fernando Chico Pardo to remain a 25% shareholder if he chooses.
  • The company said it would retain 60% of the investment and place 40% with Mexican private investors and pension funds, adding that any additional borrowing would be under $2 billion using prearranged credit lines.
  • Citigroup said it has not received a formal offer from Grupo México and reiterated that the Chico Pardo agreement and a planned IPO for the remainder are its preferred path, though it will review any bona fide proposal.
  • Shares of Grupo México fell about 15% on Monday, erasing roughly 193 billion pesos in market value and dragging the S&P/BMV IPC down 2.55%.
  • Bloomberg estimated Germán Larrea’s net worth fell by nearly $6 billion after the sell-off, while analysts questioned the strategic fit and potential effects on leverage and dividends, and President Claudia Sheinbaum said Citi must evaluate the proposal.