Citigroup has announced a strategic move to sell a 25% stake in Grupo Financiero Banamex to a company owned by prominent Mexican billionaire Fernando Chico Pardo and his family. This transaction, valued at 42 billion Mexican pesos (approximately $2.28 billion), aligns with Citi’s broader plans to take Banamex public, a key goal for the financial institution.
According to a recent filing, the transaction is expected to close in the latter half of 2026, assigning a total valuation of $9.12 billion to Banamex based on current foreign exchange rates. Following the completion of the sale, Pardo will take on the role of chair at Grupo Financiero Banamex, while Manuel Romo will continue as chief executive officer.
Citi’s CEO, Jane Fraser, expressed confidence in the deal, stating that Pardo’s investment is a clear endorsement of Banamex’s potential and strength in the Mexican market. She further indicated that the bank is actively preparing for Banamex’s initial public offering to unlock its full value, though she cautioned that the timing of this IPO will depend on regulatory approvals and prevailing market conditions.
Fernando Chico Pardo boasts a significant portfolio in the financial sector, having founded a brokerage that eventually merged into Grupo Financiero Inbursa. He holds a controlling stake in Grupo Aeroportuario del Sureste, which manages airports in the region, and oversees a private equity fund known as Promecap.
However, this sale comes with financial implications for Citigroup, as the company is set to incur a goodwill impairment charge of $726 million, which will be recognized in its third-quarter financial statements. This charge reflects the intricacies of valuing assets during the divestment process.
As Citigroup navigates this transitional phase, the upcoming sale and the projected IPO could signal significant shifts in the competitive landscape of banking and finance in Mexico. The developments are being closely monitored by investors and market analysts alike, who are keen to see how both Citigroup and Grupo Financiero Banamex will adapt to the evolving market dynamics.
