MEXICO CITY (Reuters) -Mexican mining and transportation giant Grupo Mexico has submitted a binding offer to purchase Citi’s retail unit in the country, known as Banamex, more than two years after it had scrapped previous plans to do so.
Grupo Mexico said in a filing that the bid showed its “unwavering confidence” in the country and that such a purchase would once again make Banamex competitive among its peers.
The firm, controlled by Mexican billionaire German Larrea, would purchase 25% of Banamex at 0.85x book value, and the remaining 75% at 0.80x book value, it said.
Citi paid $12.5 billion for Banamex in 2001.
The offer comes a week after local billionaire Fernando Chico Pardo, who chairs airport operator ASUR, tied up a deal for a 25% stake for $2.3 billion.
Talks for Grupo Mexic