Grupo México’s Banamex Bid Rejected; Citi Sticks to IPO Plan

Less than a week after Grupo México offered to buy 100% of Banamex, Citi rejected the bid. The bank will sell a 25% stake to Mexican businessman Fernando Chico Pardo, announced on Sept. 24, and put the remaining shares up for an Initial Public Offering (IPO).

“After reviewing the proposal, including financial and operational considerations, we have informed Grupo México that Citi rejects their offer,” Citi said. The bank added that the Sept. 24 deal, combined with the IPO, allows a responsible divestment while maximizing shareholder value.

Citi responded six days after Grupo México’s offer, just ahead of its 2Q25 earnings release on Oct. 14. Following the announcement, Grupo México shares rebounded after a steep drop earlier in the week. Grupo México’s offer aimed to acquire 100% of Banamex and keep the buyer group predominantly Mexican. It valued 25% of the bank at 0.85x book value and the remaining 75% at 0.80x. If Chico Pardo retained his 25% stake, Grupo México would acquire the remaining 75% at 0.80x. The company clarified that Chico Pardo would maintain standard minority rights.

After the initial market reaction, which saw Grupo México’s shares fall 15%, the company reassured investors that the deal would not increase debt and that ongoing mining, transport, and infrastructure projects would continue. Grupo México also said it planned to keep 60% of the investment and invite other Mexican private investors and pension funds to acquire the remaining 40%.

Citi confirmed it will proceed with Chico Pardo’s deal and the IPO. Under this agreement, Chico Pardo will acquire 25% of Banamex (520 million shares) at 0.80x book value, totaling an estimated MX$42 billion. Upon closing, he will become Chairman of Banamex’s Board. Chico Pardo has stated he does not intend to increase his stake beyond 25%, and current Chairman Ernesto Torres noted that while other investors may join, Chico Pardo will remain the reference shareholder.