**Billionaire Fernando Chico Pardo Nears Approval for Banamex Stake Acquisition**
Mexican financial regulators are on the verge of approving billionaire Fernando Chico Pardo’s proposal to acquire a 25% stake in Citigroup Inc.’s Mexican retail banking division, Banamex. This development could set the stage for a public listing of the business as early as next year. Sources familiar with the situation, who requested anonymity due to the ongoing nature of the approval process, indicate that the review of Chico Pardo’s investment and strategic vision for Banamex is nearing completion.
In September, Citigroup accepted Chico Pardo’s offer of 42 billion pesos (approximately $2.3 billion), with expectations for the deal to finalize in the latter half of 2026, contingent upon standard closing conditions, including necessary regulatory approvals in Mexico. At a recent industry conference, Citigroup’s Chief Financial Officer Mark Mason expressed optimism about the timeline, suggesting that the deal could close even sooner than anticipated.
Once the government grants its approval, Chico Pardo will be able to finalize the agreement with Citigroup and proceed with the payment for the stake. He is also set to assume the role of chairman of Banamex’s board. Citigroup, which has been divesting or winding down various retail operations globally to streamline its business, is looking to sell smaller portions of Banamex to other investors ahead of the planned public offering.
Chico Pardo, who previously served as CEO of Carlos Slim’s Grupo Financiero Inbursa and founded the private equity firm Promecap, is also a significant shareholder in Grupo Aeroportuario del Sureste, which operates in tourist-heavy regions of southeast Mexico, including Cancun. At 73, he has indicated that his sons may eventually take on responsibilities related to the bank investment.
In 2022, Citigroup announced its intention to exit retail banking in Mexico. A previous agreement with Grupo Mexico SAB, led by mining magnate German Larrea, collapsed in 2023 due to political interference from former President Andres Manuel Lopez Obrador. Following the agreement with Chico Pardo, Citigroup rejected a competing bid from Grupo Mexico that aimed to outmaneuver his offer.
In summary, the impending approval of Chico Pardo’s stake in Banamex marks a significant step in Citigroup’s strategy to streamline its operations while positioning the Mexican retail banking unit for future growth and investment opportunities.
**FAQ**
*What is the significance of Fernando Chico Pardo’s acquisition of Banamex?*
Fernando Chico Pardo’s acquisition of a stake in Banamex represents a strategic move for both him and Citigroup, as it allows for potential growth and a public listing of the bank, while Citigroup continues to simplify its global operations.
