Citigroup's Mexican Arm Banamex To Go Public In 2025, Following Corporate Separation: Report
Portfolio Pulse from Nabaparna Bhattacharya
Citigroup, Inc. (NYSE:C) is planning to separate its Mexican retail unit Banamex from its corporate and investment banking business in Mexico by the second half of 2024. Banamex is expected to go public in 2025. Earlier, Citi halted a $7 billion sale of Banamex, surprising investors. Negotiations with Grupo Mexico were discontinued due to the Mexican government's involvement in Grupo Mexico's activities and specific sale demands. Citi is considering a dual stock listing in Mexico and New York.
December 15, 2023 | 6:34 pm
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Citigroup is preparing to separate and take its Mexican retail unit Banamex public in 2025, following the cessation of a $7 billion sale. The bank is considering a dual listing in Mexico and New York.
The news of Banamex's planned IPO and the halted sale could have mixed short-term impacts on Citigroup's stock. The separation could be seen as a positive strategic move, but the failed sale and the potential complexities of a dual listing may introduce uncertainty. The market's reaction could be neutral until more details emerge or the actual IPO approaches.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80