Finance

Citi Challenges Banorte With Competing Bid for Banamex

Date: October 8, 2025

A New Twist in Mexico’s Banking Race

Citigroup’s sale of its Mexican retail arm, Banamex, has taken a competitive turn as Citi confirms a new bid from an undisclosed rival—believed to be a major international bank—directly challenging Banorte’s earlier offer. The sale, part of Citi’s broader strategy to streamline operations and focus on institutional banking, could reshape the financial landscape in Mexico, where Banamex remains a household name with millions of retail customers.

Banamex: A Legacy Institution in Transition

Founded over a century ago, Banamex (Banco Nacional de México) represents one of the oldest financial institutions in Latin America. Citi’s decision to divest its consumer banking division in Mexico, first announced in 2022, aims to simplify its structure and unlock value for shareholders. While Banorte was widely expected to secure the deal, the appearance of a competing bid reintroduces uncertainty and could raise the final sale price above initial projections of $7–8 billion.

Market and Regulatory Dynamics

The sale comes amid a period of increased scrutiny in Latin America’s banking sector. Regulators are closely watching how consolidation might affect market competition and credit access. Citi, meanwhile, plans to retain its institutional and investment banking operations in Mexico, signaling a continued commitment to the region’s corporate market. Analysts note that the transaction’s outcome could influence foreign banks’ appetite for Latin American expansion, especially amid rising interest rates and fluctuating loan demand.

What’s at Stake for Investors and Customers

A successful sale could unlock capital for Citi’s North American growth initiatives, while potentially improving Banamex’s ability to expand its digital banking and credit offerings under a new owner. For customers, the deal’s completion could bring updated technology platforms and loan products, though transitions of this scale often involve temporary service disruptions.

Looking Ahead

The competing bid underscores the enduring appeal of emerging-market banking assets. Whether Citi’s final buyer is local or foreign, the Banamex sale will likely serve as a benchmark for future cross-border deals in the sector—highlighting how legacy banking franchises can find new life in a digital era.