Dec 5 (Reuters) – Tycoon German Larrea’s conglomerate Grupo Mexico SAB is in superior talks to amass Citigroup’s (C.N) Mexican retail financial institution Banamex, Bloomberg Information reported on Monday, citing folks with data of the matter.
The mining big is attempting to finalize deal phrases with Citi, however no settlement has been reached and one other purchaser might emerge, the report stated. The lender might additionally take into account an preliminary public providing (IPO) for the unit, it added.
Citi had disclosed in January that it was on the lookout for a purchaser for the unit, which has since reportedly drawn curiosity from quite a few companies together with Mexico’s Banca Mifel SA and U.S. funding agency Apollo World Administration Inc (APO.N).
Proposals to purchase Banamex had been submitted in October by suitors, together with Mexican company titans Carlos Slim and Larrea, folks conversant in the matter advised Reuters on the time. In November, Mexican financial institution Grupo Financiero Inbursa (GFINBURO.MX) stated it had pulled out of the bidding course of.
Citigroup Chief Government Officer Jane Fraser has moved to simplify the Wall Avenue big, which has been shrinking its abroad footprint by exiting non-core markets, with agreements to promote the financial institution’s Bahrain and India shopper companies introduced earlier this 12 months.
Citigroup spokesperson declined to touch upon the Bloomberg report, whereas Grupo Mexico didn’t instantly reply to a Reuters request for remark.
Reporting by Manya Saini in Bengaluru; Modifying by Sherry Jacob-Phillips
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