Citi sells Banamex stake to Chico Pardo for $2.3B, takes impairment

Citi (C) disclosed that CHPAF Holdings S.A.P.I de C.V., a company wholly-owned by Fernando Chico Pardo and members of his immediate family, has agreed to purchase from Citi an equity stake in Grupo Financiero Banamex. Under the transaction, Fernando Chico Pardo will acquire 25% of Banamex’s outstanding common shares at a fixed price-to-book value of 0.80 times the local GAAP book value of the shares at closing. At signing, this implies a total estimated sales consideration of $2.3B. The transaction is expected to be completed in the second half of 2026. The Transaction represents the beginning of a strategic relationship with Fernando Chico Pardo. Upon closing, Fernando Chico Pardo will be appointed as chair of the baord of Banamex. On September 24, Citi incurred a non-cash goodwill impairment of approximately $726M, which is capital neutral. “Citi concluded, in connection with the agreed-upon bid received from Fernando Chico Pardo, that the fair value of the reporting unit was less than its carrying value, based on a quantitative test,” the company said.