What's Going On With Citigroup Stock Wednesday
Portfolio Pulse from Anusuya Lahiri
Citigroup plans to pursue an IPO of its consumer, small business, and middle-market banking operations in Mexico under the Banamex brand. The separation is expected to be completed by the second half of 2024, with the IPO occurring in 2025. Citi's stock is trading lower following the announcement.
May 24, 2023 | 3:01 pm
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NEUTRAL IMPACT
Grupo Mexico was previously nearing a $7 billion sale of the Banamex unit from Citigroup, but the IPO plan marks the end of the effort to sell the unit.
Grupo Mexico was previously in talks to acquire Banamex from Citigroup for $7 billion. However, with Citigroup's announcement of the IPO, the potential acquisition is no longer on the table. This may have a neutral impact on Grupo Mexico's stock price, as the market had already priced in the potential acquisition.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Citigroup's stock is trading lower after announcing plans for an IPO of its Mexican banking operations under the Banamex brand.
Citigroup's stock is trading lower as the market reacts to the announcement of the IPO for its Mexican banking operations. The separation and IPO process may introduce uncertainty and potential risks, which could negatively impact the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100