Grupo México Gives Citigroup 10 Days to Evaluate Banamex Offer

Grupo México has given Citigroup’s Board of Directors a 10-day window to review its proposal to acquire Banamex and to consider feedback from US regulators before deciding. The conglomerate explained that the purchase plan for 100% of Banamex’s shares envisions Grupo México keeping 60% of the total investment value, while the remaining 40% would later be offered to private investors and Mexican pension funds.

This clarification followed a sharp 15% drop in Grupo México’s share price on the Mexican Stock Exchange earlier in the week. The company noted that it has already secured commitments from Mexican investors for this portion and is considering a future public offering to include small and medium investors, aiming to broaden ownership and increase liquidity in its stock.

Grupo México also said it would not need to take on additional debt to finance the transaction. While analysts had warned that acquiring Banamex could require new borrowing, the company stated that any credit needed would be below US$2 billion and already covered through existing credit lines.

Regardless of whether the acquisition proceeds, Grupo México confirmed that its Mining, Transportation, and Infrastructure divisions will continue with their ongoing investment projects. If the purchase is approved, Grupo México intends to retain Banamex’s current leadership and establish a specialized executive committee to ensure the acquisition process does not divert attention from its core business units.