Citigroup Licenses Deutsche Bank in Mexico for Wholesale Unit

NEW YORK, Nov 8 (Reuters) – Citigroup Inc (CN) said on Tuesday that it will acquire Deutsche Bank’s Mexico license to continue its corporate and investment banking operations in the country, following the proposed sale of its local retail unit .

Financial details were not disclosed.

“The acquisition of this license, which is subject to receipt of all regulatory approvals, facilitates the pursuit of our consumer exit and ability to continue our institutional operations in Mexico,” Citi said in a statement to Reuters.

Citi Chief Executive Jane Fraser announced the Mexican retail unit was up for sale earlier this year, and a buyer is expected to be named by late 2022 or early 2023.

Mexican corporate titans Carlos Slim and German Larrea are the top bidders for the unit, valued at between $7 billion and $12 billion, sources told Reuters.

Purchasing Deutsche Bank’s license allows Citi to bypass the lengthy process of independently applying for its own license once the split is complete.

The retail operation will be known as Banco Nacional de Mexico, or Banamex, while the wholesale operation will be called Citi Mexico, Citis’ country chief said in September.

reporting from Saeed Azhar in New York and Kylie Madry in Mexico City; Edited by Isabel Woodford and Richard Chang

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