Citi took a significant step forward in its planned divestiture of its Mexican consumer banking unit on Monday, announcing that it has reached an agreement to sell a substantial equity stake in Grupo Financiero Banamex. A company wholly owned by prominent investor Fernando Chico Pardo and members of his immediate family has agreed to purchase the stake, marking the beginning of a new strategic relationship.
Under the terms of the transaction, Fernando Chico Pardo’s company will acquire 25 percent of Banamex’s outstanding common shares, which amounts to 520 million shares. The deal was structured at a fixed price-to-book ratio of 0.80 times the local GAAP book value at the time of closing. At the time of the announcement, this valuation implies a price-to-local GAAP tangible book value of 0.95 times, resulting in a total estimated sales consideration of approximately 42 billion Mexican pesos, or about 2.3 billion U.S. dollars. The transaction is subject to customary closing conditions, including obtaining the necessary regulatory approvals in Mexico, with an expected completion in the second half of 2026.
This sale marks the initiation of a strategic partnership between Citi and Fernando Chico Pardo. In connection with the transaction, upon its closing, Fernando Chico Pardo will be appointed as the Chair of Grupo Financiero Banamex. The existing leadership structure of the bank will largely remain in place, with Ignacio (Nacho) Deschamps continuing in his role as Chair of the core banking institution, Banco Nacional de México, and Manuel Romo staying on as the Chief Executive Officer of Banamex.
The divestiture remains a key strategic priority for Citi, and the company noted that decisions regarding the timing and structure of a previously discussed initial public offering for the remainder of Banamex will depend on various factors, including market conditions and regulatory approvals. In connection with the bid from Chico Pardo, Citi recorded a goodwill impairment charge of approximately $726 million in the third quarter of 2025, which is reported to be capital neutral for the global bank.
While Citi is selling its consumer, small business, and middle-market banking operations in Mexico, it will retain and continue to grow its industry-leading institutional business in the country. Citi expressed confidence in Mexico’s economic trajectory, highlighting its world-class manufacturing industry and deep integration with global supply chains.
The bank plans to utilize its international network to support cross-border capital markets activity and trade flows in and out of Mexico. This transaction also advances Citi’s broader corporate strategy of simplifying its structure by divesting international consumer businesses to focus on its five core, interconnected businesses.
Banamex is the fourth-largest financial group in Mexico, measured by total assets, serving a vast customer base through an extensive network of 1,300 branches and 9,000 ATMs. The institution provides a full suite of financial services to 13.6 million retail banking clients, 6,000 commercial banking clients, and manages pension funds for approximately 8.6 million customers.
Advisors/counsel: Citi’s internal Banking group acted as the exclusive financial advisor to the company for this transaction. Legal counsel for Citi was provided by Skadden, Arps, Slate, Meagher & Flom in the U.S., and by Creel, García-Cuéllar, Aiza y Enríquez, S.C. and White & Case, S.C. in Mexico. The Chico family was advised by Paul, Weiss, Rifkind, Wharton & Garrison as U.S. legal counsel and Bufete Robles Miaja, S.C. as Mexican counsel. Citi’s Banking group acted as the exclusive financial advisor to Citi on the transaction. Skadden, Arps, Slate, Meagher & Flom is acting as Citi’s U.S. legal advisor. Creel, García-Cuéllar, Aiza y Enríquez, SC and White & Case, S.C. are acting as Citi’s Mexican legal advisors. Paul, Weiss, Rifkind, Wharton & Garrison acted as U.S. legal counsel to the Chico family, with Bufete Robles Miaja, S.C. serving as Mexican counsel.
KEY QUOTES:
“This investment from Fernando Chico Pardo, one of the most respected business leaders in Mexico, is a resounding endorsement of Banamex’s strength and potential. It is also a reflection of the long-term strategic relationship we are building with Fernando as we work towards a planned public listing and realize the full value of this iconic institution for our shareholders. Banamex has long been a cornerstone of Mexico’s banking system, and we are confident it will continue to be a driver of stability and growth well into the future.”
Jane Franser, CEO of Citi
“This transaction represents our longstanding purpose of advancing projects that strengthen Mexico’s development. We are fully confident in its present and future opportunities, as well as in the potential of its people. We firmly believe that Banamex and its talented and experienced team will continue to be a fundamental pillar supporting Mexico, its companies and its families. We are also profoundly committed to continuing and to renew the social and cultural programs that distinguish Banamex and give access to an invaluable artistic heritage to millions of Mexicans. For our family, this is more than a business decision, it is an expression of confidence in Mexico and an assertion of our commitment to its economic, social and cultural progress.”
Fernando Chico Pardo
