Dec 15 (Reuters) – Wall Street giant Citigroup said on Monday it had completed the sale of a 25% stake in its Grupo Financiero Banamex to a company owned by Mexican billionaire Fernando Chico Pardo and his family.
The deal, which was announced in September, marks another step forward in Citi’s goal of divesting the Mexican retail bank.
“The closing of this transaction advances our strategic priority of divesting of Banamex and places it in the hands of one of Mexico’s most successful investors. It also allows us to redouble our commitment to our institutional business in Mexico,” CEO Jane Fraser said in a statement.
In October, Citi said it still plans to pursue an IPO for its Mexican retail unit.
The timing and the structure of the proposed initial public offering of Banamex remain subject to market conditions and regulatory approvals, Citi said.
As part of the deal, Chico Pardo has become the chairman of Banamex.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli)
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