Citi Closes Sale of 25% Banamex Stake to Chico Pardo

Citigroup has completed the sale of a 25% stake in Grupo Financiero Banamex to Mexican investor Fernando Chico Pardo and members of his family, finalizing a transaction first announced in September. The deal closed on Dec. 15 after securing approvals from Mexico’s financial and competition authorities.

Chico Pardo acquired approximately 520 million common shares at a price equivalent to 0.8 times Banamex’s book value under Mexican accounting standards. The transaction values the 25% stake at an estimated MX$42 billion, or roughly US$2.3 billion.

Following the closing, Chico Pardo was appointed Chairman of the Board of Grupo Financiero Banamex, effective immediately. Manuel Romo will continue as chief executive officer of both the group and the bank, while Ignacio Deschamps remains Chairman of Banamex’s board.

Jane Fraser, Citi’s global CEO, said the transaction advances the group’s strategy to exit consumer banking in Mexico and positions Banamex under Mexican ownership. She said the sale allows Citi to intensify its focus on institutional clients in the country by increasing investment in technology, talent and client relationships.

Chico Pardo, who also serves as chairman of airport operator Grupo Aeroportuario del Sureste (Asur), said the investment reflects a long-term commitment. “Becoming Banamex’s largest private individual shareholder is both a responsibility and a personal project,” he said. “My family and I are committed to preserving the bank’s role in Mexico’s economic development.”

Banamex said the transaction strengthens its ability to execute growth plans, including further investment in digital capabilities and improvements to customer experience across its business lines. Romo has previously said Citi prioritized maximizing shareholder value as part of its global fiduciary obligations.

Ahead of the closing, Chico Pardo stepped down from the board of BBVA Mexico, where he had served since 2009. His resignation took effect on Oct. 28, shortly after the agreement was announced.

IPO Outlook

The partial sale is part of Citi’s broader decision, announced in January 2022, to divest its consumer, small-business and middle-market banking operations in Mexico. Citi plans to monetize the remaining 75% stake in Banamex through an initial public offering, subject to market conditions and regulatory approvals.

Citi reiterated that the timing and structure of the IPO will depend on prevailing market conditions and the completion of regulatory processes.