Citigroup to Sell 25% Stake in Banamex Amid Organizational Overhaul

Citigroup Inc. C has taken a decisive step in its global restructuring efforts, announcing an agreement with a company wholly owned by Mexican business leader Fernando Chico Pardo and his family to acquire a 25% equity stake in Grupo Financiero Banamex, S.A. de C.V. (Banamex). The transaction is subject to customary closing conditions and regulatory approvals in Mexico and is likely to be completed in the second half of 2026.This transaction is a key milestone in Citigroup’s strategy to exit consumer and small-business banking in Mexico while expanding its profitable institutional banking operations. The move marks a significant step as the company works toward a planned public listing of Banamex.In December 2024, Citigroup completed the separation of its Mexican institutional banking unit from its consumer and small-business operations. Following the split, the two entities began operating under distinct financial groups: Financiero Citi México, focusing on institutional banking and Grupo Financiero Banamex.Jane Fraser, CEO of Citigroup, stated, “This investment from Fernando Chico Pardo, one of the most respected business leaders in Mexico, is a resounding endorsement of Banamex’s strength and potential. We are confident it will remain a driver of stability and growth well into the future.”Rationale Behind C's Banamex Stake SaleThe plan to divest Banamex stake aligns with Citigroup’s broader restructuring efforts to exit the retail banking business in some markets and invest in sectors with greater growth potential. The bank divested several international retail banking businesses earlier in this overhaul. In April 2021, the company announced plans to exit consumer banking operations in 14 markets across Asia and EMEA, completing exits in nine countries.Additionally, as part of its strategy, Citigroup continues to make progress with the wind-down of its Korean consumer banking operations and its overall operations in Russia. These exits will free up capital and enable the company to pursue investments in wealth management operations in Singapore, Hong Kong, the UAE, and London, thereby driving fee income growth.C's Zacks Rank & Price PerformanceShares of Citigroup have gained 38.8% in the past six months compared with the industry’s rise of 27.5%.Image Source: Zacks Investment ResearchCurrently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Similar Steps Taken by Other Finance FirmsIn August 2025, Barclays PLC BCS agreed to sell its stake in the Entercard Group, a Nordic consumer credit joint venture, to its partner, Swedbank AB, for SEK 2.6 billion ($273 million) in cash. Completion of the deal is expected by year-end, pending regulatory approvals.For BCS, the disposal marks another step in its ongoing strategy to streamline operations and exit non-core markets. It follows Barclays’ April 2025 agreement with Brookfield Asset Management to spin off most of its U.K. merchant-acquiring business, reinforcing management’s focus on wholesale banking, U.S. and U.K. credit cards, and its domestic retail arm.In the same month, Affiliated Managers Group, Inc. AMG agreed to offload its interest in Comvest Partners’ (Comvest) private credit business to Manulife Financial Corporation. The all-cash transaction, valued at nearly $285 million, is expected to be closed in the fourth quarter of 2025, subject to customary closing conditions.The move aligns with AMG’s goal to reallocate its capital into the lucrative investment opportunities. In sync with this, in May, the company announced the sale of its stake in Peppertree Capital Management Inc. for $240 million. Further, in 2022, the company divested its stakes in Veritable LP and Baring Private Equity Asia.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Barclays PLC (BCS): Free Stock Analysis Report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks