Major Stake in Banamex Returns to Mexican Ownership
Mexican businessman Fernando Chico Pardo, through a company wholly owned by him and his family, has reached an agreement with Citigroup (Citi) to acquire a 25% equity stake in Grupo Financiero Banamex, S.A. de C.V. (Banamex). The acquisition involves approximately 520 million common shares and is valued at around 42 billion Mexican pesos, which translates to roughly 2.3 billion US dollars. This significant transaction marks a step towards returning a key portion of Banamex to Mexican ownership.
The deal is subject to customary closing conditions, including necessary regulatory approvals in Mexico, and is anticipated to be finalized in the second half of 2026. Upon the transaction's completion, Fernando Chico Pardo is slated to become the Chairman of the Board of Directors of Banamex, while Manuel Romo will continue in his role as Chief Executive Officer.
Citigroup's Strategic Divestment Continues
This sale is a pivotal moment in Citi's ongoing strategy to divest its consumer and small-business banking operations in Mexico, a process that began with an announcement in early 2022. Citigroup aims to focus on its institutional banking business in the country. The divestiture of Banamex remains a strategic priority for Citi, with plans for a public listing (IPO) of the remaining entity.
Citi had previously explored a full sale of Banamex but encountered challenges, including government intervention that emphasized the importance of Mexican ownership. The current agreement with Chico Pardo is seen as a significant step towards the planned IPO.
Financial Details and Buyer Profile
The 25% stake was acquired at a fixed price-to-book of 0.80 times the local GAAP book value at closing. In connection with the transaction, Citi recorded a non-cash goodwill impairment charge of approximately 726 million US dollars in the third quarter of 2025, which is considered capital neutral for the bank.
Fernando Chico Pardo is a well-known figure in Mexican business circles. He is the founder and CEO of Promecap, a leading private equity firm in Mexico. His extensive business interests also include being a controlling shareholder in Grupo Aeroportuario del Sureste (ASUR), which operates several airports. Pardo has a long history in finance, having founded a brokerage firm that later merged with Inbursa.
Banamex's Legacy and Future Outlook
Banamex, officially Banco Nacional de México, is one of Mexico's oldest and most significant financial institutions, with a history dating back to its founding in 1884. Citigroup acquired Banamex in 2001 for 12.5 billion US dollars. As part of Citi's restructuring, Citibanamex officially separated into Grupo Financiero Citi México and Grupo Financiero Banamex at the end of 2024, with the latter focusing on consumer banking.
This acquisition by a prominent Mexican businessman underscores confidence in Banamex's future and its role in the Mexican financial landscape. Chico Pardo expressed commitment to the institution, stating, 'We are very committed and happy to be part of Banamex, an iconic institution in Mexico with a very promising future.'
7 Comments
Habibi
42 billion pesos is a huge sum. Is this really the best use of capital for a minority stake?
Manolo Noriega
The move to bring Banamex partially under Mexican ownership is a welcome development for national identity. Still, the underlying strategy for Citi is clearly about optimizing their global portfolio, not solely about Mexico's benefit, which should be acknowledged.
Fuerza
It's encouraging to see a major institution like Banamex gain a prominent Mexican shareholder. However, one must consider the implications of concentrating more financial power in the hands of a few established figures within the country.
Ongania
This acquisition is a positive signal for national confidence in the Mexican financial sector. Yet, the reported goodwill impairment by Citi suggests they might be shedding assets at a discount, raising questions about the true value for all parties.
Fuerza
While it's good to see a significant portion of Banamex returning to Mexican ownership, it's important to remember this is only a 25% stake, and the full divestment via IPO still leaves much to be determined about its ultimate control.
Loubianka
Subject to approval in 2026? Too many uncertainties, this isn't a done deal yet.
BuggaBoom
Positive step for financial independence. Hope to see more of this!