Jane Fraser, main enforcement serviceman of Citigroup Inc., during an interrogation for an occurrence of "The David Rubenstein Show: Peer-to-Peer Conversations" astatine the Economic Club of Washington successful Washington, DC, US, connected Wednesday, March 22, 2023.
Valerie Plesch | Bloomberg | Getty Images
Citigroup announced Wednesday it plans to prosecute an archetypal nationalist offering of its Mexico business, Banamex, making ceremonial a long-telegraphed spinoff.
The slope expects to implicit the separation successful the 2nd fractional of 2024, with a nationalist offering apt to travel successful 2025, it said. The institution hasn't yet decided connected a listing destination, but a dual listing successful Mexico and the U.S. could beryllium possible, a root acquainted with the plans told CNBC.
"After cautious consideration, we concluded the optimal way to maximizing the worth of Banamex for our shareholders and advancing our extremity to simplify our steadfast is to pivot from our dual way attack to absorption solely connected an IPO of the business," CEO Jane Fraser said successful a press release.
Citigroup bought Banamex for $12.5 cardinal successful 2001. The slope first said successful 2022 that it would beryllium exiting the business, which operates astir 1,300 branches with much than 12 cardinal retail clients and astir 10 cardinal pension money customers. It counts astir 38,000 employees.
Shares of Citigroup fell astir 1% successful premarket trading Wednesday.
— CNBC's Leslie Picker contributed to this report.
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