Citigroup agrees to sell a quarter of its Banamex unit to prominent Mexican businessman Fernando Chico Pardo, marking a major step in its ongoing strategy to simplify operations and prepare for an IPO.
Highlights:
Deal Value & Stake: Citigroup will sell a 25% equity stake in Grupo Financiero Banamex to Fernando Chico Pardo and his family for about $2.3 billion.
Strategic Move: The transaction is a key part of Citi’s plan to divest its international retail banking operations and simplify its global structure.
Leadership & IPO Path: Upon closing (expected in H2 2026), Chico Pardo will become Chair of Banamex, while Manuel Romo remains CEO; Citi is also considering an IPO for Banamex, with market conditions and regulatory approvals guiding timing.
Summary:
Citigroup has agreed to sell 25% of Banamex to Mexican businessman Fernando Chico Pardo for approximately $2.3 billion, through a company owned by him and his family. The deal involves about 520 million common shares, priced at 0.80 times Banamex’s local book value.
This move aligns with Citi’s broader “simplification strategy,” which includes shedding non-core consumer banking units globally. It will also help establish a “floor valuation” for Banamex ahead of a potential IPO. The transaction is expected to close in the second half of 2026, pending regulatory approvals.
After completion, Fernando Chico Pardo will assume the position of Chair of the Board of Banamex, while current CEO Manuel Romo will continue to lead the bank’s operations. The deal has triggered a non-cash goodwill impairment of about $726 million for Citi, deemed capital-neutral.
