Grupo México Submits Binding Bid to Acquire Banamex, Shares Fall

Grupo México, the mining and infrastructure conglomerate led by Germán Larrea, has formally renewed its interest in acquiring all of Grupo Financiero Banamex, Citigroup’s retail banking unit in Mexico. The company submitted a binding offer to acquire 100% of the bank while maintaining majority Mexican ownership.

In a statement to the Mexican Stock Exchange (BMV), Grupo México outlined its proposal, valuing 25% of Banamex at a 0.85x book value multiple and the remaining 75% at 0.80x. “If the Chico Pardo family decides to retain their participation, we would be pleased to have them as investors, and their minority rights would be respected in line with market standards,” the company said, referring to Fernando Chico Pardo, who recently acquired a 25% Banamex. Grupo México added that once full control is secured, additional Mexican investors — including pension funds (Afores) — could join.

The conglomerate said its transition plan aims to ensure “full certainty and continuity of services for Banamex clients” and emphasized that, under exclusive Mexican regulatory oversight, the bank “can recover its competitive potential within our financial system.” Grupo México also pledged to preserve Banamex’s renowned art collection and its historic colonial-era buildings.

Negotiations are reportedly taking place at Citigroup’s New York headquarters, with the deal valued at approximately MX$160 billion (US$8.7 billion). Grupo México’s new offer comes two years after its initial interest, following earlier talks that failed to reach an agreement. In 2023, Citigroup announced plans to divest Banamex through an initial public offering (IPO) after more than a year of negotiations with Grupo México and other bidders, including Grupo Mifel.

Citigroup responded to the announcement stating it has not yet received a formal offer from Grupo México but will “evaluate any proposal responsibly.” The bank reaffirmed that its agreement with Fernando Chico Pardo and the proposed IPO “remain our preferred path to maximize total value for Banamex shareholders.” Citi added that it will consider regulatory approvals and the certainty of closing any proposed deal.

Market reaction to Grupo México’s announcement was immediate: the company’s shares fell nearly 17% in early trading on the BMV, reflecting investor concern over the potential acquisition.