President Claudia Sheinbaum discussed opportunities for collaboration with Citigroup CEO Jane Fraser on Monday, including ways the bank can support the Mexican president’s economic development initiatives.
Fraser was joined by Ernesto Torres Cantú, Citi’s head of international, as part of her tour of nations where the multinational investment bank and financial services company operates.
“It’s always an honor and a privilege to chat with President Sheinbaum, to express the confidence that both Citi and Banamex have in the country’s perspectives, and to confirm our commitment to Mexico,” Fraser said in a statement.
Sheinbaum posted a brief message on social media, lauding the bank executive’s “intelligence” and the “big opportunities” awaiting Mexico. Fraser described the meeting as productive, noting discussions on “a variety of projects that promote economic growth and equitable social development.”
Their statements made no mention of Citi’s proposed initial public offering (IPO) of Banamex, its retail banking arm that it separated from on Dec. 1, 2024, after operating as Citibanamex for over 20 years.
Citigroup’s decision to sell Banamex in late 2024 was part of the sweeping overhaul undertaken by CEO Fraser to improve the bank’s performance.
Citi acquired Banamex, one of Mexico’s oldest and most prestigious bank brands, for US $12.5 billion in 2001. According to the newspaper The Financial Times, Citibanamex struggled to compete in a market dominated by other foreign lenders and fell from Mexico’s second-largest bank to its fourth due to poor management, bloated costs and U.S. regulatory constraints.
In January 2022, Citigroup began efforts to sell Banamex and nearly closed a US $7 billion deal with Grupo México — a conglomerate owned by Mexican billionaire German Larrea — in February 2023.
The transaction fizzled in May 2023 after then-President Andrés Manuel López Obrador interfered, complicating the process by requiring pro-labor concessions, such as demanding layoff protections for workers.
Following Citi’s decision to pursue an IPO instead of selling Banamex outright, López Obrador floated the idea that the Mexican government would enter the bidding process if no other deal materialized. The government scuttled that idea just a few months late, opting for a “different path” without providing further details.
On April 6, the Federal Finance Ministry authorized the creation of Citi México as the bank’s new financial group. Grupo Financiero Citi México, its official name, will oversee the bank and its brokerage operations in Mexico.
With reports from El Economista and El Universal
