Strategic move ahead of Banamex IPO plans
Citigroup has reached an agreement to sell a 25% stake in Grupo Financiero Banamex to a firm owned by Mexican billionaire Fernando Chico Pardo and his family. The deal, valued at 42 billion Mexican pesos (approximately $2.28 billion), is expected to close in the second half of 2026, according to a regulatory filing. At current exchange rates, the agreement values Banamex at $9.12 billion.
The move marks a significant step toward Citigroup’s broader plan to take Banamex public. Following the transaction, Fernando Chico Pardo will assume the role of chair of Grupo Financiero Banamex. Meanwhile, Manuel Romo will continue to serve as CEO.
Boost of confidence from a major investor
Citigroup CEO Jane Fraser described the investment as a strong endorsement of Banamex’s value and potential. “The investment from Fernando Chico Pardo, one of the most respected business leaders in Mexico, is a resounding endorsement of Banamex’s strength and potential,” said Fraser.
Pardo brings significant experience in the Mexican financial and infrastructure sectors. He previously founded a brokerage that became part of Grupo Financiero Inbursa and is currently a controlling shareholder in airport operator Grupo Aeroportuario del Sureste. He also leads private equity firm Promecap.
IPO plans and financial impact
Citigroup reiterated its intention to proceed with Banamex’s initial public offering to unlock the full value of the unit. However, the timeline will depend on regulatory approvals and overall market conditions, Fraser noted.
As a result of the sale, Citigroup will take a $726 million goodwill impairment charge, which will be recorded as an expense in the third quarter. Despite the accounting impact, the strategic importance of the transaction is viewed as a positive for Citi’s long-term restructuring efforts in Mexico.
