“For some it would be a once-in-a-lifetime opportunity”: Citigroup started talks with potential Banamex buyers

Citigroup's chief financial officer, Mark Mason, revealed that he has already started talks with potential Banamex buyers.

At a press conference where he announced the quarterly financial results of the group, Mason said that its operations in the country are a very important franchise, and it is also a very attractive market at the moment, so the sales process will be complex and will take time.

“We are making progress and are in the initial conversations with buyers and our partners. And as with any transaction of this size and complexity, you know, once again, it's going to take time,” he said.

He noted that the options for the sale of consumer banking, Afore, infrastructure, and cultural acquis; include even a possible public offering in the stock market, so he stressed that the process will be carried out with full transparency.

“We have options. This is for some a once in a lifetime opportunity and our options range from, a sale to an initial public offering. I, and as we have been in the past, will continue to be quite transparent about it, as things progress in the coming quarters,” he said.

He noted that so far there are no further details on the new banking license that Citigroup will apply for in Mexico to operate its wholesale business, while noting that Mexico now has greater appeal taking into account geopolitical factors, such as the conflict between Russia and Ukraine.

It should be recalled that on 11 January last, Citigroup's executive director, Jane Frase r, announced the sale of Banamex, as part of a global strategy to maintain only the highest value portfolios in the countries where it operates.

Some of the first to show interest in acquiring Banamex were the president of Grupo Azteca, Ricardo Salinas Pliego, as well as Inbursa, owned by businessman Carlos Slim, who said he would be involved in the buying process if they see conditions and possible synergies.

Another of those who raised their hands was Banorte. Its director Marcos Ramírez Miguel, assured that they will start an analysis of the opportunities for the acquisition of the banking institution.

Prior to the 85th Banking Convention held on March 24 and 25, the CEO of Grupo Financiero Citibanamex, Manuel Romo, said that information about the sales process will be released in April for those interested in its purchase.

He assured that a data room (data room) will be made available to those who meet the necessary requirements for their purchase, since he assured that it is important for them that the “information is in good hands”.

“We hope that by April we will have the data room available for those interested in buying the bank (...) The analysis of the buyers will be done and we will talk about potential buyers. We're open. It is early in the process and there are all of them: banks, not banks, foreign and domestic,” he said.

He stressed that the profile of candidates must ensure that they have the financial solvency to acquire Banamex, as well as the commitment to handle the bank's information with the utmost responsibility, since it has more than 135 years of experience.

Regarding the sale of the institution, President Andrés Manuel López Obrador has assured that the federal government will not put obstacles in the sale of Banamex, although he respectfully suggested that a group of Mexican shareholders should take control of this financial institution and that the acquis should be preferred cultural heritage that it protects is considered a national heritage.

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