The sale of Citigroup’s Mexican business Citibanamex could be done directly or through an initial public offering (IPO), the head of the Mexican business said on Thursday, Feb. 24th, adding there has been interest from banks and non-banks, both local and foreign.
Citibanamex’s Chief Executive Manuel Romo ruled out selling the bank piecemeal and said the process could take up to two years, with executives analyzing all potential buyers.
“We’re not taking anyone out of the running,” Romo said on a conference call with the press to discuss company results.
Analysts have estimated Citibanamex could go for anywhere from $4 billion to $8 billion, though Romo declined to name a price.
Since the sale was announced in January, analysts have argued that selling the business in parts will be easier as some potential buyers already have large market shares in Mexico.
Groups like Banorte and Santander have said they are analyzing the sale, along with homegrown billionaire Ricardo Salinas, who controls Mexico’s Banco Azteca.
Romo said a buyer could be announced by the end of the year.
The executive said Citigroup will act as an adviser on the sale and there has been “extraordinary cooperation” from the Mexican government so far.
In line with the American bank’s recent strategy of selling off international operations, Citigroup announced in January that it was selling its Mexican consumer business.
Source: El Financiero
