Sale of Citibanamex, at the end of 2022 or in 2023;  process is complying with regulation: Banxico

The governor of the Bank of Mexico (Banxico), Victoria Rodríguez Ceja, assured that the process of selling Citibanamex by Citigroup is complying with the corresponding regulation, so the central bank will maintain surveillance of it.

During the videoconference in which the first semester report on financial stability was presented, Rodríguez announced that the sale could take place at the end of this year or during the next one.

“Of course, it is important for the financial system, the financial authorities are vigilant so that the process complies with all the requirements established in the law. So far, all the steps established by the regulation are being complied with. and it is expected that this sale will take place towards the end of 2022 or during 2023”, he pointed out.

Rodriguez assured that the completion of the sale will depend on the parties involved in it and that the authority participates within the scope of its competence. In the case of Banxico, it must issue an opinion on the sale, so it will thoroughly review the process of sale.

“The entry authorization processes of banks and financial groups require the opinion of Banxico, who makes an exhaustive review of the business models and other characteristics of the institutions to issue the opinion that, at the time, is required”, he said.

He pointed out that if there is a risk of concentration, in the event that it is a large bank that buys Banamex, it will be the Federal Commission of Economic Competition (Cofece) that will analyze the case and make a decision in this regard, because it is a matter of competition.

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“Regarding Banamex being acquired by a large bank, no matter who the buyer is, the corresponding regulation will be complied with and, in case there is a competition issue, It is up to Cofece to analyze it and, where appropriate, determine what is appropriate”, he pointed out.

On June 8, Bloomber announced that the Grupo México owner Germán Larrea is among those interested in acquiring Citibanamex. He pointed out that another of the interested businessmen is Daniel Becker, from Banca Mifel.

The names are added to those of the Santander Bank of Spain, Banorte Financial Group and Inbursa Financial Groupof magnate Carlos Slim, who have already announced their intention to invest in the purchase of the bank.

The report cited as a source people with knowledge of negotiationswho noted that both Santander and Inbursa have already submitted initial offers for the bank.

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At the end of April, the CEO of Citibanamex, Manuel Romo, announced that the bank began sharing information with potential biddersone of the first steps in a process to find a new owner.

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