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HSBC’s Mexico unit analyzing possible Citibanamex purchase -Breaking


© Reuters. FILEPHOTO: Man walks by a Citibanamex Bank branch in Mexico City. Mexico, January 13, 2022. REUTERS/Gustavo Graf

MEXICO CITY (Reuters – HSBC Mexico is analyzing the acquisition of Citigroup (NYSE:) Mexico’s retail operations, also known as Citibanamex. HSBC Mexico’s chief Executive Officer and President stated this Tuesday.

Jorge Arce from HSBC Mexico said, “We are still looking for the opportunity, if it’s a genuine strategy for bank,” during a conference call that was reported first by El Financiero in Mexico.

A spokesperson from HSBC confirmed these comments to Reuters.

Arce explained that everyone is interested in it. “Everyone will price it differently depending on the potential buyer. It’s an important franchise.”

Reuters has been told by analysts that Citibanamex is likely to fetch $4 billion-$8 billion.

Arce stated that HSBC Mexico is still in the initial stages of analyzing a potential purchase.

“That does not mean that we will make or reject a bid,” said he. Although it is still some time away, there are no Mexican bankers who don’t think about the value of this asset and how it could be combined.

Citigroup from the United States announced that its Mexican retail operation would be sold earlier in this month. It is the latest international move.

Citibanamex will be listed sometime in spring according to Jane Fraser, Citigroup CEO. Jane Fraser spoke out during a call with investors on Jan. 14.

Analysts believe that both Mexican and foreign banks will be interested in the country’s number one bank. Although the Mexican president Andres Manuel Lopez Obrador stated that he prefers Citibanamex go to local investors, it is no. 2. bank.

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