By 2025, Citigroup intends to pursue an IPO for Banamex, its Mexican subsidiary

 

By 2025, Citigroup intends to pursue an IPO for Banamex, its Mexican subsidiary.  According to CEO Jane Fraser, this decision aims to streamline the company and increase shareholder value. Despite initial interest, sales negotiations with possible buyers, including Grupo Mexico, failed. Citigroup purchased Banamex for $12.5B in 2001, but regional rivals gained market share over time. In addition to serving approximately 12 million retail customers and 10 million pension subscribers, Banamex has 38,000 staff and 1,300 branches. The bank will keep its institutional and private banking activities in Mexico, and Citigroup will continue to report Banamex's performance until ownership falls below 50%. Shares of Citigroup decreased by 3% after the news.