Citigroup Completes Separation Of Banamex

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(RTTNews) - Citigroup Inc. (C) Monday said it has completed the separation of Banamex from its institutional banking business in Mexico.

With this separation, Citi will now operate two separate financial groups in Mexico: Grupo Financiero Citi México and Grupo Financiero Banamex.

Citi added that it will continue working on the proposed initial public offering of Grupo Financiero Banamex. The timing of which will be driven by regulatory approvals and market conditions to maximize shareholder value, the company said.

Jane Fraser, Citi CEO, said: "This separation represents an important milestone in our simplification and brings us closer to our long-term vision of a more connected bank that is focused around our core strengths. We are proud to have executed this process thoughtfully and with full transparency. Our commitment to our clients in Mexico is as strong as ever, and we will continue to connect Mexico and the world through our market-leading investor and corporate client platforms. We will now prepare for the Banamex IPO, focused on optimizing value for our shareholders."

Ernesto Torres Cantú, Head of Citi International, said: "Citi has operated in Mexico for almost a century, and this country remains one of our most important institutional markets. As a result of the extraordinary work, dedication and professionalism of the Banamex and Citi teams over nearly three years, today we have two solid financial institutions with prominent positions in their respective segments that will continue to boost the country's growth. We thank the Mexican Financial Authorities for their support during the separation process, as well as our colleagues who worked tirelessly to accomplish this milestone."

Citi has weighed a dual stock listing for the Banamex unit, possibly in Mexico City and New York, Reuters has reported.

The bank had previously said it planned to list its Banamex unit, which caters to nearly 20 million clients and has a network of 1,300 branches in Mexico, in 2025.