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Jane Fraser, chief executive officer of Citigroup Inc., during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” at the Economic Club of Washington in Washington, DC, US, on Wednesday, March 22, 2023.Â
Valerie Plesch | Bloomberg | Getty Images
Citigroup announced Wednesday it plans to pursue an initial public offering of its Mexico business, Banamex, making formal a long-telegraphed spinoff.
The offering will likely come in 2025, a source familiar with the plans told CNBC. The company hasn’t yet decided on a listing destination, but a dual listing in Mexico and the U.S. could be possible, the source said.
“After careful consideration, we concluded the optimal path to maximizing the value of Banamex for our shareholders and advancing our goal to simplify our firm is to pivot from our dual path approach to focus solely on an IPO of the business,” CEO Jane Fraser said in a press release.
The bank first said in 2022 that it would be exiting the business, which operates about 1,300 branches with more than 12 million retail clients and about 10 million pension fund customers. It counts approximately 38,000 employees.
“Citi has operated in Mexico for over a century, and we will further invest and grow our industry-leading institutional franchise in this critical global hub, delivering the full power of Citi’s global network to our institutional and private banking clients in this priority market,” Fraser said.
— CNBC’s Leslie Picker contributed to this report.
This is breaking news. Please check back for updates.
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