Citi Rejects Grupo Mexico’s Offer to Buy Banamex
On Thursday, Citi made a significant decision to reject the offer made by mining and transportation conglomerate Grupo Mexico to purchase Banamex for approximately $9.3 billion. The rejection came after careful consideration of the proposal, taking into account various factors such as financial considerations and transaction certainty.
Grupo Mexico’s offer to acquire Banamex was seen as a competitive move in the market, but Citi stood firm in its decision to decline the offer. The rejection was communicated in a statement released by the bank and reported by Bloomberg.
Background of the Offer
Earlier on the same day, Mexican financial and antitrust authorities were said to have received documents regarding last month’s offer by billionaire Fernando Chico Pardo to acquire a 25% stake in Banamex, a move that was part of a larger plan involving an initial public offering.
Citi expressed its belief that the transaction announced in September 2025, along with the planned IPO, would allow for the divestiture of Banamex in a responsible manner while maximizing value for its shareholders. Chico Pardo had offered 80% of the book value, amounting to around $2.3 billion, for the stake.
However, Grupo Mexico, under the ownership of billionaire Germán Larrea, made an unsolicited offer that outbid Chico Pardo’s proposal. Grupo Mexico offered 85% of the book value for the 25% stake in Banamex, along with a deal for the remaining 75% of the bank at 80% of book value.
Implications and Reactions
Grupo Mexico had previously secured a $5 billion debt package in 2023 tied to a proposed acquisition of Banamex, indicating its interest in the bank. However, tensions arose when Mexican President Andrés Manuel López Obrador expressed his preferences for the deal, leading to uncertainties surrounding the acquisition.
Despite the rejection of Grupo Mexico’s offer, analysts suggest that the door for future negotiations between the conglomerate and Citi may not be entirely closed. Suggestions have been made that Grupo Mexico could consider building a position in Banamex once it becomes a public company, indicating potential future developments in the market.
The rejection by Citi seemed to have an immediate impact on Grupo Mexico’s share price, with a notable increase following the bank’s announcement. This reaction underscores the significance of the rejection in the short term market dynamics.
Conclusion
In conclusion, Citi’s rejection of Grupo Mexico’s offer to buy Banamex reflects the bank’s strategic decision-making process aimed at maximizing value for its shareholders. The rejection comes in the midst of a competitive market environment and potential future developments that could shape the landscape of the banking industry.
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