Citigroup sees ‘significant interest’ as Mexico sale talks kick off

Citigroup has begun the sales process for its consumer, small-business and middle-market banking divisions in Mexico, though an initial public offering remains on the table. 

The Citibanamex unit “is attracting a lot of attention,” and the company has begun fielding interest from buyers in preliminary sales talks, Chief Executive Jane Fraser said Thursday on a conference call with analysts. No deal is imminent, however, as Citigroup still needs to carve out the institutional businesses it hopes to keep, according to the CEO.

Jeoffrey Guillemard/Bloomberg

“This is not an uncomplicated transaction,” she said. “This is going to take time. We want to do it properly. And by time I mean a few quarters. So I think we’re not anticipating at this very early stage whether that would be this year or early next year.”

Citigroup said in January it would try to unload its retail-banking operations in Mexico, home to the lender’s largest branch network in the world. The move is part of Fraser’s push to simplify operations and focus the New York-based company on wealth management and U.S. credit card offerings. 

“There is significant interest in this iconic franchise,” Fraser said. “Because it is a once-in-a-lifetime opportunity here, we have a range of options ahead, from IPO to sale.”