Citigroup Rejects Grupo Mexico's $9.3 Billion Banamex Bid, Reaffirms IPO Plan

Citigroup Declines Unsolicited Offer for Banamex

Citigroup announced on Thursday, October 9, 2025, its rejection of an unsolicited $9.3 billion bid from Mexican conglomerate Grupo Mexico for its retail banking unit, Banamex. This decision reaffirms Citigroup's commitment to its previously outlined divestiture strategy for the Mexican subsidiary.

The unexpected offer from Grupo Mexico, a major player in the mining and transport industries, emerged last week, more than two years after the company had initially withdrawn from negotiations to acquire Banamex. Citigroup stated that 'after careful consideration of the proposal, including but not limited to financial considerations and transaction certainty,' it advised Grupo Mexico of the rejection.

Preferred Path: Stake Sale and IPO

Citigroup is moving forward with its preferred plan, which involves selling a 25% stake in Banamex to Mexican billionaire Fernando Chico Pardo, chairman of airport operator ASUR. This agreement, announced on September 24, 2025, is valued at approximately $2.3 billion. Following this initial sale, Citigroup intends to offer the remaining portion of Banamex to the public through an Initial Public Offering (IPO).

A spokesperson for Citigroup reiterated the bank's stance, stating, 'We remain committed to realizing the full value of Banamex for our shareholders, and the agreement we announced with Fernando Chico Pardo and the proposed IPO continues to be our preferred path to delivering that outcome.' The bank believes this strategy represents the most responsible approach and will deliver the greatest value to its shareholders.

Market Reaction and Future Outlook

The announcement of Grupo Mexico's bid had initially impacted local markets, briefly reducing the conglomerate's market capitalization. However, shares in Grupo Mexico responded positively to Citi's rejection, climbing more than 4.5% on Thursday.

Citigroup completed the separation of Banamex from its institutional banking business in Mexico in December 2024, a crucial step in preparing for the planned IPO. The IPO is expected to occur on the Mexican Stock Exchange, likely sometime in 2026, with the timing and structure guided by market conditions and regulatory approvals. Citigroup also plans to assess interest from other prominent Mexican investors for minority stakes in the unit.