Skadden Advises Citi in Successful Banamex Spin-Off in Mexico  

A team of lawyers from Skadden, Arps, Slate, Meagher & Flom, led by Paola Lozano in New York, successfully advised Citi on streamlining its operations in Mexico through the spin-off of Banamex.

Narciso Campos from the Mexico office of White & Case also advised in the operation.

As of December 1, Citi now operates two distinct financial groups in Mexico: Grupo Financiero Citi México and Grupo Financiero Banamex.

This separation represents a significant milestone in Citi’s strategic plan to simplify its operations. As previously announced, Citi is actively pursuing the proposed IPO of Grupo Financiero Banamex, with timing dependent on regulatory approvals and market conditions to maximize shareholder value, which remains a top priority.

Jane Fraser, Citi CEO, stated, "This separation marks an important milestone in our simplification efforts and brings us closer to our long-term vision of a more connected bank centered around our core strengths. We are proud of the thoughtful and transparent execution of this process. Our commitment to our clients in Mexico remains strong, and we will continue to connect Mexico and the world through our market-leading investor and corporate client platforms. We are now focused on preparing for the Banamex IPO to optimize value for our shareholders."

Ernesto Torres Cantú, Head of Citi International, remarked, "Citi has operated in Mexico for nearly a century, and this country remains one of our most important institutional markets. Thanks to the extraordinary work, dedication, and professionalism of the Banamex and Citi teams over the past three years, we now have two robust financial institutions with strong positions in their respective segments, poised to drive the country’s growth. We are grateful to the Mexican financial authorities for their support during this separation process, as well as to our colleagues who worked tirelessly to achieve this milestone."

Grupo Financiero Citi México will maintain a strong presence in the country, serving Citi’s institutional clients through Banco Citi México, a full-service bank, and brokerage services via Citi México Casa de Bolsa. With four business lines—Banking, Markets, Services, and Wealth—Citi will offer a comprehensive portfolio of financial products and services to financial institutions, governments, investors, multinationals, and national companies seeking to internationalize. Supported by its unmatched global network and over 120 years of continuous presence in Latin America, Citi’s local team of approximately 3,000 employees will serve around 2,000 clients.

As previously announced in February, Julio Figueroa, Citi Latin America Cluster and Banking Head, will chair the Boards of Directors of Grupo Financiero Citi México and Banco Citi México, with Álvaro Jaramillo serving as Citi Country Officer and Banking Head for Mexico.

Grupo Financiero Banamex will include Banco Nacional de México, a full-service bank that offers retail banking services, including wealth management, consumer loans, residential mortgages, deposits, payroll services, payments, and a full suite of commercial banking products. Additionally, it will oversee Tarjetas Banamex, Afore Banamex, Seguros Banamex, and Pensiones Banamex, which provide credit cards, retirement asset management, insurance, and annuities, respectively. With a digital-first approach, innovative online banking, mobile apps, and an extensive network of approximately 1,300 branches and over 9,100 ATMs nationwide, Banamex will continue to serve nearly 20 million clients, furthering its 140-year legacy in Mexico. More than 39,000 employees currently support these businesses, along with Banamex’s art collection, historical buildings, and social and cultural initiatives.

Ignacio Deschamps will serve as Chair of the Boards of Directors of Grupo Financiero Banamex and Banco Nacional de México, as announced in February. Ernesto Torres Cantú will remain a board member of both the financial group and the bank, while Manuel Romo will serve as CEO of Grupo Financiero Banamex and Banco Nacional de México.

Since announcing its intent to exit consumer banking across 14 markets in Asia, Europe, the Middle East, and Mexico as part of its strategic refresh, Citi has successfully closed sales in nine of those markets, with a sales process underway in Poland. The wind-downs of Citi’s consumer businesses in China and Korea, as well as its overall presence in Russia, are nearing completion.

citigroup.com/global/about-us/global-presence/mexico