[ad_1]
Oct 27 (Reuters) – Mexican corporate titans Carlos Slim and Germany’s Larrea are battling to acquire Citigroup Inc’s ( CN ) local retail arm after the latest round of bidding left the two front-runners, sources familiar with the matter said.
A new proposal was presented last week for Citibanamex, which is being taken down by US Bank in an effort to sell off some global operations and streamline the firm by Chief Executive Officer Jane Fraser.
The bid amount for the unit, known as Banamex, was not disclosed by the sources. One noted that Citigroup is set to provide candidates with more in-depth information about the business in the coming days, meaning expected valuations could be revised.
Banca Miffel – run by Daniel Baker, who heads the independent Mexican banking group – also made an offer but did not find the funding to compete with proposals from Slim Inbursa ( GFINBURO.MX ) and Lareya Grupo Mexico ( GMEXICOB.MX ). The sources said.
The sources also warned that no deal has been confirmed with either party and that Citigroup may eventually decide to sell Banamex shares on the Mexican stock exchange. They requested anonymity to discuss personal information.
“We are in ongoing discussions with a number of potential buyers as part of our process and are committed to pursuing a path of maximum value for our shareholders,” a Citigroup spokeswoman said.
Inbursa and Grupo Mexico declined to comment. Bank Miffal did not immediately respond to a request for comment.
Inbursa, backed by Mexico’s richest man, Citigroup, was tipped as a strong contender when it put Banamex up for sale in January. If it wins, Inbursa will become the country’s second-biggest lender, behind the local unit of Spain’s BBVA ( BBVA.MC ).
However, mining tycoon Larrea has the potential to be a candidate to buy Banamex, the sources said.
A future fight will come after other heavyweight names are out of the running. Grupo Financiero Banorte ( GFNORTEO.MX ) said on Friday it was pulling out, without giving a reason for the decision, joining other funds including retail and media investor Ricardo Salinas Pligo and Spanish bank Santander ( SAN.MC ).
Mexican officials, including President Andrés Manuel López Obrador, have pushed for a local governor, with analysts valuing Banamex at between $7 billion and $12 billion.
Reporting by Andres Gonzalez and David French in London and Saeed Azhar in New York. Additional reporting by Valentine Hilaire in Mexico City; Editing by Josie Cao
Our Standards: The Thomson Reuters Trust Principles.
[ad_2]
Source link
