© Reuters. FILE PHOTO: Mexican billionaire Carlos Slim attends in the course of the Fundacion Telmex Mexico Siglo XXI (Telmex Basis Mexico XXI Century) in Mexico Metropolis, Mexico, September 2, 2022. REUTERS/Raquel Cunha/File Picture
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By Andres Gonzalez, David French and Saeed Azhar
(Reuters) – Mexican company titans Carlos Slim and German Larrea are squaring off to accumulate Citigroup Inc (NYSE:)’s native retail arm after the most recent spherical of bidding left the duo as frontrunners, sources acquainted with the matter mentioned.
New proposals have been submitted final week for Citibanamex, which is being offloaded by the U.S. financial institution as a part of Chief Govt Officer Jane Fraser’s efforts to promote some worldwide operations and simplify the agency.
The bid quantities for the unit, recognized too as Banamex, weren’t disclosed by the sources. One famous that Citigroup was set to offer candidates with extra in-depth data on the enterprise within the coming days, that means potential costs could possibly be revised.
Banca Mifel – run by Daniel Becker, who individually heads Mexico’s banking affiliation – additionally made a suggestion nevertheless it lacked the monetary backing to compete with the proposals from Slim’s Inbursa and Larrea’s Grupo Mexico, one of many sources mentioned.
The sources additionally cautioned that no deal was assured with any celebration and Citigroup might finally determine to promote Banamex shares on the Mexican Inventory Trade as an alternative. They spoke on situation of anonymity to debate personal data.
“Consistent with our course of, we’re in fixed dialogue with various potential consumers and stay dedicated to pursuing any route that maximizes worth for our shareholders,” a Citigroup spokesperson mentioned.
Inbursa and Grupo Mexico declined to remark. Banca Mifel didn’t instantly reply to a request for remark.
Backed by Slim, Mexico’s richest individual, Inbursa was flagged as a robust contender when Citigroup put Banamex up on the market in January. If it wins, Inbursa would turn out to be the nation’s second-largest lender after the native unit of Spain’s BBVA (BME:).
Nevertheless, mining tycoon Larrea has the firepower to compete as a candidate to purchase Banamex, the sources mentioned.
A potential duel comes after different heavyweight names exited the method. Grupo Financiero Banorte mentioned on Friday it had pulled out, with out providing a cause for the choice, becoming a member of different withdrawals together with retail and media tycoon Ricardo Salinas Pliego and Spanish financial institution Santander (BME:).
The Mexican authorities, together with President Andres Manuel Lopez Obrador, have pushed for a home purchaser, with analysts valuing Banamex from wherever between $7 billion and $12 billion.
