Mexican president: 'No problem' if Grupo Mexico buys Citi's Banamex unit

Negotiations over the sale of Citigroup Inc's Mexican retail bank Citibanamex are "going really well" and one potential buyer is conglomerate Grupo Mexico, Mexican President Andres Manuel Lopez Obrador said on Tuesday. Lopez Obrador said the government views positively the potential sale of the retail banking unit, also known locally as Banamex, to the mining and transport conglomerate.

Negotiations over the sale of Citigroup Inc's Mexican retail bank Citibanamex are "going really well" and one potential buyer is conglomerate Grupo Mexico, Mexican President Andres Manuel Lopez Obrador said on Tuesday.

Lopez Obrador said the government views positively the potential sale of the retail banking unit, also known locally as Banamex, to the mining and transport conglomerate. "We have informed Citibanamex's advisers and directors that on the government's end there is no disagreement, there is no problem with this operation going through," Lopez Obrador told a press conference.

Lopez Obrador said he believes several "recommendations" he has for the sale are being met. Reuters reported last week that Grupo Mexico was closing in on a $7 billion deal to purchase Banamex which would see Citi retain a 10% stake in the unit.

Citi announced plans to offload the unit more than a year ago as part of an effort from Chief Executive Jane Fraser to sell some international operations to simplify its business.

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