Citigroup has agreed to sell a 25% stake in Grupo Financiero Banamex to a company owned by Mexican billionaire Fernando Chico Pardo and his family. This sale marks a step toward Citigroup’s plan to take the unit public. Citigroup is a global financial services company providing a range of banking and investment services. Grupo Financiero Banamex is a large financial institution in Mexico offering banking, insurance, and investment products.
The sale is worth 42 billion Mexican pesos, equivalent to approximately US$2.28 billion, and is expected to be finalised in the second half of 2026. This deal values Banamex at US$9.12 billion at the current foreign exchange rate. Citigroup’s initial acquisition of Banamex occurred in 2001 for US$12.5 billion. The stake sale has triggered a goodwill impairment charge of US$726 million for Citigroup, which will be recorded as an expense in the third quarter.
According to Suryansh Sharma, an analyst at Morningstar Research Services, the market views this divestment positively, considering the valuation decent. Following the sale, Pardo, aged 73, will assume the role of chair of Grupo Financiero Banamex, while Manuel Romo will continue as chief executive officer. Citigroup CEO Jane Fraser stated that the investment from Pardo is a resounding endorsement of Banamex’s strength and potential. Citigroup is currently working towards Banamex’s initial public offering to realise its full value, subject to regulatory approvals and market conditions.
Analysts at Piper Sandler view the news positively and anticipate a favourable stock reaction. Citigroup shares have risen 44% year-to-date, outperforming the S&P 500 bank index, which is up 23% over the same period. Forbes ranked Pardo as Mexico’s eighth-richest person in May, with a net worth of US$3.5 billion. His career began with the founding of a stock brokerage that later became part of Carlos Slim’s Inbursa Financial Group.
