Sale of Citibanamex could reach up to 8,000 million dollars: Bloomberg

Banamex, the Mexican unit of Citigroup, may attract offers of between 7,000 and 8,000 million dollars as the number of bidders is reduced, according to what they told Bloomberg people familiar with the matter.

The Financial Group Banortethe Financial Group Inbursaand the Financial Group Mifel of mining tycoon Germán Larrea are still up for bid, according to the people, who asked not to be identified because the talks are private.

Representatives of Citi Group, Banorte and Inbursa declined to comment. Representatives for Mifel and Grupo México de Larrea did not respond to requests for comment. The sale process is continuing and offers for the unit could change, the people said.

Grupo Financiero Inbursa, owned by the family of tycoon Carlos Slim, continues in the process of purchasing Banamexcurrently Citibanamex, the retail unit of Citigroup in Mexico, and is inviting other partners to join its bid for the bank, its director of Investor Relations, Frank Aguado, said last July.

“We have to see if it is a good price and if it is adequate for the strategy that we have for lower our costs”, said Aguado in a conference with analysts about Inbursa’s quarterly financial results.

Spanish bank Santander has abandoned the process of buying Citigroup’s Mexican retail banking business, having previously submitted a non-binding offer earlier this year.

The second largest bank in the euro area by market value has expanded in the emerging economies seeking faster growth than in its main European markets, where it has been cutting costs to cope with ultra-low interest rates.

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With information from Reuters

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