Mexican conglomerate Grupo México has submitted a binding offer to acquire up to 100% of Banamex from Citigroup, reviving negotiations that had been scrapped in 2023 and proposing alternatives that include partnering with the recent buyer of 25% of the bank.
Owned by magnate Germán Larrea, Grupo México is a multinational conglomerate in the mining, transportation and infrastructure industries. It owns Mexico’s largest mining company and is the country’s leading copper producer. The group also operates the largest national railway network and major infrastructure projects.
The company notified the Mexican Stock Exchange (BMV) of its proposal to purchase 100% of Grupo Financiero Banamex, saying that it will maintain the bank’s majority Mexican ownership and strengthen its competitiveness in the country.
“Once Banamex is regulated solely by Mexican financial authorities, it will be able to regain its competitive potential in our financial system,” Grupo México said in the letter addressing the BMV.
Grupo México’s offer comes just a week after businessman Fernando Chico Pardo, president of Grupo Aeroportuario del Sureste (Asur), announced the purchase of 25% of the bank’s shares. Grupo México left open the possibility of acquiring only 75% of the bank, in order to respect Chico Pardo’s offered investment.
Meanwhile, Citi noted that it has not yet received an offer by Grupo México, and its only current deal is with Chico. However, it said that if Grupo México submits an offer, Citi will consider it.
“The agreement we announced last week with Fernando Chico Pardo and our proposed IPO remain our preferred path,” Citi said. “If Grupo México makes an offer, we will, of course, review it responsibly and consider, among other risk factors, the ability to obtain the required regulatory approvals and the certainty of closing a proposed transaction.”
This is the second time Grupo México has raised the issue of acquiring Banamex. It first expressed interest in 2023 but the deal fell through. The news of a potential 75-100% stake in Banamex caused Grupo México’s stock price to sink 18.8% on Monday morning.
Germán Larrea is the second-richest man in Mexico with an estimated fortune of US $46.3 billion, according to Forbes magazine. Carlos Slim is first.
