Citigroup sells 24% stake in Banamex as part of IPO preparation

Citigroup has agreed to sell a 24% stake in its Mexican retail banking unit, Banamex, to investors including General Atlantic and Blackstone, raising around $2.5 billion, according to Reuters. The move is part of Citi’s plan to prepare Banamex for a full initial public offering (IPO).

Citigroup sells stake to strategic investors

The sale of a 24% stake in Banamex highlights Citigroup’s strategy to streamline its operations and focus on key markets. Investors participating in the transaction include General Atlantic, Blackstone, and other private investment firms. The deal values the Mexican banking unit at approximately $10 billion.

By offloading this portion of Banamex, Citigroup gains liquidity while retaining majority ownership. This step is intended to make the unit more attractive for a public listing, providing a clearer path for the upcoming IPO. Market analysts note that the transaction may also strengthen Banamex’s balance sheet ahead of public scrutiny.



The selected investors bring both capital and expertise, signaling confidence in the long-term potential of Mexico’s retail banking sector. Citi will continue to manage Banamex operations during this transitional phase, ensuring stability for customers and employees.

Banamex advances IPO preparation

The partial sale comes as Citigroup seeks to position Banamex for a full IPO. By reducing its stake gradually, Citi aims to test investor appetite and optimize the valuation of the unit. The IPO could potentially attract both international and local institutional investors, reflecting confidence in Mexico’s growing financial market.

Banamex is one of Mexico’s largest retail banks, serving millions of customers across the country. Its strong market presence and diverse portfolio make it a key asset for Citi’s strategic repositioning. Analysts expect that the infusion of new investor capital will allow the bank to expand digital services, improve customer offerings, and strengthen risk management ahead of public listing.

The move also reflects a broader trend of global banks optimizing their regional operations. By selectively selling stakes in specific units, institutions can focus resources on strategic priorities while unlocking value from established businesses.

Background on Mexican anking and Banamex’s market position

Founded over a century ago, Banamex is a major player in Mexico’s banking industry, offering services from retail deposits to corporate loans. Citigroup acquired the bank in 2001, integrating it into its global operations while maintaining a local brand identity.

Citigroup has been reshaping its portfolio in recent years, divesting non-core assets and preparing key subsidiaries for public markets. The Mexican retail unit sale is consistent with this strategy, reflecting the bank’s goal to optimize capital allocation and streamline operations.

The IPO, once completed, would mark one of the largest public listings in Mexico in recent years, potentially raising significant capital and enhancing market visibility for Banamex.

Citigroup’s sale of a 24% stake in Banamex to General Atlantic, Blackstone, and others positions the Mexican bank for a successful IPO. The transaction strengthens the unit’s financial position while allowing Citi to focus on strategic priorities. As the IPO approaches, Banamex is expected to benefit from both increased investor interest and enhanced operational flexibility, solidifying its role in Mexico’s retail banking sector.