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Citi rejects Grupo Mexico's bid for Banamex

Citigroup rejected Grupo Mexico’s bid to acquire its retail division in Mexico, Banamex. Instead, Citigroup opted to move forward with an agreement previously reached.

Grupo Mexico

Surprised last week

When it made an uninvited $9.3 billion bid for Banamex more than two years after it had abandoned negotiations.

Local markets were rocked by the news.

Wiping out billions

In the firm's capitalization. Citi announced Thursday that they had rejected the offer. This led to a 4.5% increase in shares of Grupo Mexico.

Citi announced last month that it will be launching a new website.

Sell a 25% stake

Banamex sold its shares to Mexican billionaire Fernando Chico Pardo who is the chairman of airport operator ASUR for $2.3 billion. It was announced at the time that the lender planned to conduct a public offer for the remainder of the unit while also testing the interest of local magnates.

Citi said on Thursday that they believed the deal would maximize shareholder value and divest responsibly from Banamex. Reporting by Raul and Kylie Madry, editing by Cassandra Garrison

(source: Reuters)