Citigroup says Mexico unit buyers nationality not decisive, despite government preference

div classBodysc17zpet90 cdBBJodivpMEXICO CITY Reuters – The nationality of who buys Citigroup‘s Mexican unit, known as Citibanamex, will not be the deciding factor despite the Mexican government’s preference to sell the bank to a local buyer, an executive told local media in an interview published on Tuesday. p

pMexican President Andres Manuel Lopez Obrador has made clear he wants to see investors “Mexicanize” the unit, floating names of Mexican billionaires like Ricardo Salinas of Banco Azteca and Carlos Hank Gonzalez of Banorte as potential buyers.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“It‘s completely reasonable that the government has a vision of who is the best manager for one of the country’s largest financial entities,” Paco Ybarra, chief executive of Citis Institutional Clients Group, told local newspaper El Financiero. p

p“Its one more factor in the decision process, not something that we consider to be decisive and it is open to as many options as possible,” said Ybarra, underscoring the sale is open to foreign buyers. p

pCiti country head Manuel Romo announced in March that Ybarra will lead the sale.p

pThe executive is currently in Mexico City ahead of the banks announcement of sale terms, several outlets reported.p

pIn February, Romo said Citibanamex could be sold directly or through an initial public offering, but not piecemeal.p

pYbarra also told local outlet El Economista that for Citi, “its important for the buyer to pay what we know the unit is worth.” p

pAnalysts have said Citibanamex could go for 4 billion to 8 billion, though Citi, which paid 12.5 billion for the unit in 2001, has not yet named a price.p

pMexican bank Banorte said in March that if it launches a successful bid, it will invite “all Mexicans” to participate in the purchase.p

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pp Reporting by Kylie Madry Editing by Chris Reesep

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