The sale of most of Citigroup's Banamex retail assets to Grupo Mexico for about $7B is about to be finalized. The investment bank and financial services corporation will retain a piece of the unit, and it will have the choice between selling it to Grupo Mexico or putting it up for public sale. - Grupo Mexico is a significant infrastructure and copper mining firm, but its venture into banking has alarmed investors, causing shares to fall by the most in almost four months.
- Investors have been keeping a close eye on the status of the divestment as several bidders have been vying for Banamex.
- The purchase may have a short-term negative impact on Citigroup's capital levels, causing the bank to postpone share buybacks planned in previous quarters.
- Banamex's sale fits in with Citigroup CEO Jane Fraser's plan to sell up its overseas consumer businesses and concentrate on institutional products and the U.S. retail market.
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