Citigroup Inc said Tuesday it intends to buy Deutsche Bank's license in Mexico so it can continue its corporate and investment banking operations in the country after the planned sale of its local retail unit.
Citi said to Reuters’s representatives that with the acquisition of this license, which will be subject to all necessary regulatory approvals, Citi is making it easier to realize its entry into the consumer services market and allow its institutional operations to continue in Mexico.
Citi CEO Jane Fraser said earlier this year that the Mexican retail unit had been put up for sale, and a buyer is expected to be announced by late 2022 or early 2023.
According to Reuters sources, Mexican corporate titans Carlos Slim and German Larrea are considered prime contenders to buy the unit, valued by various sources at between $7 billion and $12 billion.
With the purchase of the Deutsche Bank license, Citi will be able to avoid the lengthy process of obtaining its own license on its own once the separation is complete.
The retail unit will be called Banco Nacional de Mexico, or Banamex, and the wholesale unit will be called Citi Mexico, the Citi chief said in September.