Citigroup Nears Regulatory Approval for 25% Banamex Stake Sale

Core Insights - Mexican financial regulators are close to approving Citigroup Inc.'s planned sale of a 25% stake in its retail banking unit, Grupo Financiero Banamex, to billionaire investor Fernando Chico Pardo for approximately $2.3 billion, marking a significant step in Citigroup's exit from Mexican consumer banking [1][8]. Group 1: Banamex Stake Sale Details - The sale is part of Citigroup's strategy to deconsolidate its Mexican consumer banking operations and is expected to close in the second half of 2026, although it may finalize earlier than anticipated [2][3]. - The completion of this transaction is crucial for Citigroup's plans for a future public listing of Banamex [3][8]. Group 2: Citigroup's Restructuring Efforts - The divestiture aligns with Citigroup's broader restructuring strategy to exit retail banking in certain markets and focus on sectors with higher growth potential, having already exited consumer banking operations in 14 markets across Asia and EMEA [4][6]. - Citigroup's restructuring efforts are projected to generate $2–$2.5 billion in annualized run-rate savings by 2026 and deliver a 10–11% return on tangible common equity [6]. Group 3: Market Performance - Citigroup's shares have increased by 43.2% over the past six months, outperforming the industry average rise of 24.5% [7].