For Immediate Release Citigroup Inc. (NYSE: C)
Citi Announces Agreement with Fernando Chico Pardo to Purchase 25% Equity Stake in Banamex
HIGHLIGHTS
- A company wholly owned by Fernando Chico Pardo and members of his immediate family has agreed to purchase from Citi an equity stake in Banamex.
- The divestiture of Banamex remains a strategic priority for Citi; this transaction is significant step as Citi works toward a planned public listing of Banamex.
- Citi will retain and continue to grow its industry-leading institutional business in Mexico to deliver the full power of its global network to clients.
NEW YORK – In a significant step towards Citi’s divestiture of Banamex, Citi today announced that a company wholly-owned by Fernando Chico Pardo and members of his immediate family has agreed to purchase from Citi an equity stake in Grupo Financiero Banamex, S.A. de C.V. (“Banamex”).
Under the transaction, Fernando Chico Pardo will acquire 25% (~520 million shares) of Banamex’s outstanding common shares at a fixed price-to-book of 0.80 times the local GAAP book value at closing. At signing, this implies a price-to-local GAAP tangible book value1 of 0.95 times and total estimated sales consideration of ~MXN 42 billion (~USD 2.3 billion). The transaction is subject to customary closing conditions, including regulatory approvals in Mexico, and is expected to be completed in the second half of 2026.
The divestiture of Banamex remains a strategic priority and as previously noted, any decisions related to the timing and structure of the proposed Banamex initial public offering (“IPO”) will continue to be guided by several factors, including market conditions and receipt of regulatory approvals.
This transaction represents the beginning of a strategic relationship with Fernando Chico Pardo. Accordingly, upon closing, Fernando Chico Pardo will be appointed as Chair of Grupo Financiero Banamex. Ignacio (Nacho) Deschamps will remain as Chair of Banco Nacional de México. Manuel Romo will remain as Chief Executive Officer of Banamex.
This investment from Fernando Chico Pardo, one of the most respected business leaders in Mexico, is a resounding endorsement of Banamex’s strength and potential. It is also a reflection of the long-term strategic relationship we are building with Fernando as we work towards a planned public listing and realize the full value of this iconic institution for our shareholders. Banamex has long been a cornerstone of Mexico’s banking system, and we are confident it will continue to be a driver of stability and growth well into the future."
"This transaction represents our longstanding purpose of advancing projects that strengthen Mexico’s development. We are fully confident in its present and future opportunities, as well as in the potential of its people,” said Fernando Chico Pardo. “We firmly believe that Banamex and its talented and experienced team will continue to be a fundamental pillar supporting Mexico, its companies and its families. We are also profoundly committed to continuing and to renew the social and cultural programs that distinguish Banamex and give access to an invaluable artistic heritage to millions of Mexicans. For our family, this is more than a business decision, it is an expression of confidence in Mexico and an assertion of our commitment to its economic, social and cultural progress,” he concluded.
In connection with the agreed-upon bid received from Fernando Chico Pardo, Citi incurred a goodwill impairment charge of ~USD 726 million in All Other—Legacy Franchises, which has been recorded in expenses for the third quarter of 2025 and is capital neutral to Citi.
Citi will retain and continue to grow its industry-leading institutional business in Mexico to deliver the full power of its global network to clients. Given the country’s world-class manufacturing industry and integration with global supply chains, Citi is confident about Mexico’s trajectory and is uniquely positioned to support cross-border capital markets activity and trade flows to and from Mexico.
The transaction announced today also advances Citi’s goal of divesting its international consumer businesses and simplifying the firm to focus on its five interconnected businesses. Outside of the Banamex divestiture, with the recent announcement of the entry into an agreement to sell Citi’s Poland consumer business, the exit from these consumer businesses is now complete or close to completion.
Banamex, the fourth-largest financial group in Mexico by total assets, offers a full suite of financial services to consumers and small and mid-market business owners through an extensive distribution network of ~1,300 branches, ~9,000 ATMs, ~13.6 million retail banking clients, ~6,000 commercial banking clients and ~8.6 million pension fund management customers.
Over the last two decades, Citi’s investments have significantly transformed Banamex into a competitive financial institution, focused on delivering a richer, smarter, more intuitive experience for clients and customers.
Citi’s Banking group acted as the exclusive financial advisor to Citi on the transaction. Skadden, Arps, Slate, Meagher & Flom LLP is acting as Citi’s U.S. legal advisor. Creel, García-Cuéllar, Aiza y Enríquez, SC and White & Case, S.C. are acting as Citi’s Mexican legal advisors.
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as U.S. legal counsel to the Chico family, with Bufete Robles Miaja, S.C. serving as Mexican counsel.
A Form 8-K Current Report has been filed in connection with the transaction.