“We need a bank and this is an opportunity”: AMLO on Banamex

He President Andrés Manuel López Obrador stated that negotiations between Grupo Mexico and Citigroup they were put on hold “because they are asking for more guarantees”, though he did not specify which ones.

“Negotiations with the Mexican group have been put on hold because they are asking for more guarantees, but that is their business,” he said this Wednesday at a morning press conference in National Palace.

“I think the people of the City heard us here when I said it was a good deal,” he added.

The president said that if Citigroup did not want to sell, his administration would talk to them. “We do not rule out such a possibility,” he stressed.

“We need a bank and this was an opportunity; This is an opportunity,” he concluded.

“Almost all governments have banks, not us,” he added, saying that Banamex “yes, that’s useful.”

“So, about the bank, if possible, I will talk to him. secretary Tax authorities [Rogelio Ramírez de la O] so you can understand why we can do this with — how much is $3,000 million? “60 billion pesos.”

This Wednesday, Citigroup said it will conduct an initial public offering of its Banamex division, which includes consumer businesses, small businesses and mid-sized banking in Mexico, after failing to sell the business to a major mining conglomerate.

Giant Grupo México tycoon Herman Larrea, negotiated the purchase of Citibanamex.

Citigroup announced plans to sell the division over a year ago as part of a strategic review by its CEO. Jane Frazier, exit 14 consumer banking markets in Asia, Europe, Middle East and Mexico.

The company now expects its initial public offering to be completed in 2025.

Last Tuesday, AMLO assured that negotiations with businessman Germán Larrea to sell Banamex were ongoing, although it warned that his government could enter into a deal to buy the bank if Grupo México did not. In addition, he confirmed that there would be no “losses” if the bank was acquired, since it is a “round business”.

“There are no losses, because this is a round business. You know how much the banks made last year, 240 billion pesos, and this bank, when they sell it, is one of the bottom earners, but it must have made 8 or 10 billion pesos,” he explained. .

Banamex was acquired for $12.5 billion in 2001 and was valued at around $7 billion in recent negotiations.

Grupo México’s offer surpassed that of the Mexican Mithel Bank, from Daniel Bechlerand the last two rates for the retail banking division.

Citigroup first announced in January 2022 that it would be leaving Mexico, ending its 20-year retail presence in the country and kicking off an extended trading phase.

In addition to the potential weakening of business, Citi also has to deal with restrictions placed on the deal by the López Obrador government, including a ban on mass layoffs.

In February, Frazier met with the Mexican president amid the bank’s attempt to finalize the sale of its local unit.

Following Wednesday’s announcement, Citi shares fell 3.2% after opening in New York at $44.40. For its part, Grupo México shares rose more than 6.3% in the stock market of the Latin American country.

(According to Reuters)

Source: Aristegui Noticias

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