NEW YORK, April 14 (Reuters) – Citigroup Inc (C.N) is in early talks with potential patrons of its Mexico shopper banking enterprise Citibanamex, executives stated on Thursday, whereas cautioning that the sale course of could be advanced and will take a couple of quarters to finish.
Citi disclosed in January that it was in search of a purchaser for the unit, Mexico’s No. 3 shopper financial institution, which has struggled to trim prices to develop into extra aggressive with rivals like Spain’s BBVA and Santander.
Analysts have estimated that the financial institution, which Citi purchased for $12.5 billion in 2001, might fetch between $4 billion and $8 billion.
Citi Chief Government Jane Fraser informed analysts that the financial institution was “attracting loads of consideration” within the talks with patrons, calling the sale a “once-in-a-lifetime alternative.”
Varied potential bidders for the enterprise have already surfaced, together with Mexico’s Grupo Financiero Banorte in addition to Santander.
Chief Monetary Officer Mark Mason informed reporters that current geopolitical occasions might make the franchise extra interesting to others than when Citi first introduced its intention to promote.
Mason and Fraser each stated the exit course of was advanced and will nonetheless embody an preliminary public providing, with the CEO including that it was unclear whether or not a deal could be accomplished this 12 months or subsequent.
Reporting by David Henry in New York and Manya Saini in Bangalore; modifying by Christian Plumb and Nick Zieminski
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