Citigroup (C.N) has rejected an unsolicited $9.3 billion bid from Mexican conglomerate Grupo Mexico (GMEXICOB.MX) for its Banamex retail unit. The decision reaffirms Citigroup’s commitment to its previously outlined divestiture strategy, which involves selling a stake to a Mexican billionaire and proceeding with an initial public offering (IPO). Citigroup is a global financial services company providing a wide range of banking and investment services. Grupo Mexico is a major player in the mining and transport industries in Mexico.
Grupo Mexico’s unexpected offer emerged last week, more than two years after the company had withdrawn from initial negotiations to acquire Banamex. The announcement initially impacted local markets and briefly reduced Grupo Mexico’s market capitalization. However, shares in Grupo Mexico responded positively to Citi’s rejection, climbing more than 4.5% on Thursday.
Citigroup had previously announced its intention to sell a 25% stake in Banamex to Fernando Chico Pardo, chairman of airport operator ASUR (ASURB.MX), for approximately $2.3 billion. Following this initial sale, the lender planned to offer the remaining portion of Banamex to the public through an IPO while simultaneously assessing interest from other prominent Mexican investors.
Citigroup stated on Thursday that it believes its existing plan to divest Banamex represents the most responsible approach and will deliver the greatest value to its shareholders. The company remains focused on executing its strategy, which balances stakeholder interests with financial objectives.
