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September 26, 2022

Citi invites second round of bids for Mexican retail arm by October-end

Citigroup is inviting second bids that could be the final round of bids for its Mexican retail business Citibanamex , by October end, Bloomberg reported, citing unnamed sources.

Billionaire Carlos Slim-backed Grupo Financiero InbursaGrupo Financiero Banorte and mining mogul German Larrea are expected to submit final bids for the consumer business, the sources said.

Mexican firm Grupo Financiero Mifel , which is backed by Advent International , is leading an investors’ consortium that will submit a bid, the publication reported, citing Mifel. 

Citi and its Mexican unit declined to comment on the development. Inbursa and Larrea representatives did not immediately respond to the requests seeking comments. 

As per the sources, the US banking group is asking interested parties to submit final binding offers for the next round, which means that the auction process is nearing its end. 

Although another round of bids is possible, it is unlikely, the sources said, adding that a final decision is yet to be made and the investors could still walk out. 

As per the publication’s earlier report, the Mexican unit could attract bids worth up to $8bn. 

At the start of the year, Citi announced plans to close its consumer, small business and middle-market banking operations in Mexico.

The news comes as the bank restructures its operations across the globe to reduce its retail presence and focus on the institutional banking business. 

Most recently, Citi said it is closing its UK retail arm to focus on wealthy clients. 

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