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25m ago

Grupo México Slumps as Banamex Bid Jolts Mexican Market

Citi signals preference for an IPO, leaving the Banamex sale outcome uncertain.

Señal de la Bolsa de Madrid frente a la fachada del edificio, en Madrid (España)
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Overview

  • Shares of Grupo México fell roughly 18% to 19% at the open in Mexico City after the conglomerate publicly offered to buy Banamex.
  • The S&P/BMV IPC opened down 2.35% to 60,525.53, its lowest level since September 10, as the stock’s drop weighed on the broader market.
  • Grupo México’s proposal values 25% of Banamex at 0.85 times book and the remaining 75% at 0.80 times, with an alternative to acquire 75% if Fernando Chico Pardo retains his agreed 25%.
  • Citi said taking Banamex public would best maximize value and reported it has not formally received an offer from Grupo México.
  • U.S. stocks opened mixed as AMD jumped about 28% on a chip-supply deal with OpenAI that includes warrants for up to a 10% stake, while the government shutdown delayed the September payrolls report and traders maintained expectations for Fed rate cuts.