US banking group Citi is in talks to buy Deutsche Bank’s Mexican arm as it prepares to exit consumer banking operations, Bloomberg has reported citing undisclosed sources.

Talks between Citi and the German bank are at an early stage and a deal may or may not materialise, the sources said. 

A deal, which would require regulatory approval, will not include Deutsche Bank’s brokerage operations, which were re-launched in Mexico earlier this year.

“Citi has operated in Mexico for more than a century and the country will remain among Citi’s top institutional markets outside of the US. As we have said, we intend to continue to operate a locally licensed banking business in Mexico through our institutional clients group, and our private banking franchise,” the publication quoted a Citi spokesperson as saying. 

Earlier this year, Citi announced plans to close its consumer, small business and middle-market banking operations in Mexico.

As per media reports, the assets up for sale could be valued at around $15bn.

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By GlobalData

Last month, Citi CEO Jane Fraser said that the sale process for Mexican assets has begun. Citi could also consider an initial public offering (IPO) for the assets.

A deal with the German bank would make it easier for the bank to offer services as getting a banking licence in Mexico can take years. 

Deutsche Bank has been reducing its operations in Mexico after announcing plans to exit ten countries in 2015.