Saturday, August 30, 2025

Sheinbaum meets with Citigroup CEO Jane Fraser

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.

President Sheinbaum meets with Citigroup CEO Jane Fraser in the National Palace
Sheinbaum posted a brief message on social media, lauding the bank executive’s “intelligence” and the “big opportunities” awaiting Mexico. (Claudia Sheinbaum/X)

“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

1 COMMENT

Have something to say? Paid Subscribers get all access to make & read comments.
A wall of import/export shipping containers

Good news for Trump: Mexico is planning to raise tariffs on Chinese imports

6
Mexico's 2026 budget proposal includes increased tariffs on China, a move the Trump administration has been pushing since early this year.
Two men shake hands in front of an Amazon logo in Mexico City

Amazon teams up with Mexico City to save water with tech-driven infrastructure upgrades

0
In addition to water savings, automation will allow the city to direct water to eastern CDMX, an area historically plagued by shortages.
foxconn offices

Foxconn invests US $168M to expand AI server production at Jalisco plant

2
The investment is part of the Taiwanese company's domestic expansion plans and helps Mexico position itself as a key player in advanced technology manufacturing.
BETA Version - Powered by Perplexity