Citi Sells Banamex Stake to Mexican Magnate for $2.3 Billion (1)

Citigroup Inc. agreed to sell a 25% stake in its Mexican retail banking unit Banamex to local businessman Fernando Chico Pardo as part of a plan to list the asset publicly.

Chico Pardo — via a company owned by the executive and his family — will acquire the stake for about 42 billion pesos ($2.3 billion), Citigroup said in a statement. When the deal closes, as expected in the second half of next year, Chico Pardo will become chair of Grupo Financiero Banamex, it said.

New York-based Citigroup had been courting wealthy investors to buy a chunk of Banamex that ...