Citigroup to spin off its Mexico business after efforts to sell unit collapse
Citigroup Inc. announced on Wednesday that it would pursue an initial public offering (IPO) of its Mexico business Banamex. The bank expects to complete the separation in the second half of 2024, with a public offering likely to follow in 2025, according to a release.
Citigroup CEO Jane Fraser said in the release, “After careful consideration, we concluded the optimal path to maximizing the value of Banamex for our shareholders and advancing our goal to simplify our firm is to pivot from our dual path approach to focus solely on an IPO of the business.”
Citigroup bought Banamex for $12.5 billion in 2001, and the bank currently has around 1,300 branches, more than 12 million retail clients, and around 10 million pension fund customers, with around 38,000 employees.
The bank had originally planned to sell or IPO Banamex back in January of 2022, and recent media reports suggested that a deal to sell the business was nearing completion with a valuation of around $7 billion. However, the bank ultimately decided that an IPO would be the best strategy for maximizing the value of Banamex for shareholders.
Fraser has been pursuing a strategy of simplifying Citigroup’s business since taking over as CEO in March of 2021, and one of her first moves was to announce a reduction in the bank’s global footprint.
Citigroup has not yet decided on a listing destination for Banamex, but a dual listing in Mexico and the United States is a possibility, according to a source familiar with the plans.
FAQs:
What is Citigroup’s plan for Banamex?
Citigroup plans to pursue an IPO of Banamex, its Mexico business. The bank expects to complete the separation in the second half of 2024, with a public offering likely to follow in 2025.
Why did Citigroup choose an IPO over a sale for Banamex?
Citigroup CEO Jane Fraser said in a release that the bank concluded after careful consideration that an IPO would be the optimal path to maximizing the value of Banamex for shareholders and advancing the bank’s goal to simplify its firm.
When did Citigroup first announce its plans to sell or IPO Banamex?
Citigroup first announced its plans to sell or IPO Banamex in January of 2022, as part of CEO Jane Fraser’s strategy of simplifying the bank’s business. Recent media reports had suggested that a sale was nearing completion at a valuation of around $7 billion.
What is Banamex?
Banamex is Citigroup’s Mexico business, which the bank bought for $12.5 billion in 2001. It currently operates around 1,300 branches with more than 12 million retail clients and around 10 million pension fund customers, with around 38,000 employees.

Citigroup to separate its Mexico operations following failed attempts to sell the division
Citigroup has announced its plans to pursue an initial public offering (IPO) of its Mexico-based business, Banamex, thereby ending a 16-month search for a strategic buyer for the unit. The bank hopes to conclude the separation in the second half of 2024, followed by a public offering in 2025. Citigroup has yet to finalize a listing destination, but a dual listing for Mexico and the US is a possibility. CEO Jane Fraser stated that Citigroup would focus solely on the IPO of the business, rather than its dual-path approach. One of her first moves as CEO was to announce a reduction in the bank’s global footprint. Plans to sell or IPO Banamex were first announced in January 2022. Citigroup bought Banamex for $12.5 billion in 2001, and it currently operates approximately 1,300 branches with more than 12 million retail clients and about 10 million pension fund customers, backed by roughly 38,000 employees. Citigroup also confirmed that it will resume share buybacks this quarter.