Mexico City, Mexico — A day after American Citigroup announced their exit to consumer banking in Mexico, other financial institutions have expressed interest in acquiring their Mexico business.
Banco Santander, Banorte and Scotiabank have expressed interest in buying Citibanamex businesses.
On Tuesday, Citigroup announced their intention to leave the commercial and corporate banking business in Mexico, so the Banamex brand, as well as all the properties, accounts, loans, branches and ATMs, will be sold to the “highest bidder.”
Meanwhile, New York-based Citigroup, which is using its own bankers, has yet to start a formal auction.
“Although (Citibanamex) has been losing market share in recent years, we believe that the franchise could attract the interest of many potential stakeholders with operations in Mexico including Banorte, Santander, Scotiabank and Inbursa, who could see this as a unique opportunity to cement its position among the market leaders,” commented BofA Securities, who estimates the Citibanamex franchise could be worth between $12.5 and $15.5 billion USD.
Mexico’s Carlos Slim, owner of Telmex and Ricardo Salinas Pliego, owner of Elektra, are also being called potential candidates to buy the Mexico-side of Citigroup’s businesses.