Finance
Citi Drops $7 Billion Banamex Sale That Drew AMLO Scrutiny
- US bank plans to restart ‘modest’ share buybacks this quarter
- Sale talks for the unit had stretched on for more than a year
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Citigroup Inc. plans to sell shares of its Banamex unit in an initial public offering, ending talks for a potential $7 billion divestiture to a local buyer in a deal that faced complications from Mexico’s president.
The US bank had been close to a deal to sell most of Banamex’s retail operations to Grupo Mexico SAB. Although several bidders had been vying for Banamex over the past year, the pool of potential buyers dwindled after Mexican President Andres Manuel Lopez Obrador placed conditions on any deal, including a requirement that Mexican capital back the transaction and there be no massive layoffs. He also wanted to preserve the historically important art collection that Banamex owns.