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Investing.com -- Citigroup rejected Mexican mining and transport conglomerate Grupo Mexico’s bid for its retail unit in Mexico, known as Banamex, on Thursday.
The bank opted to continue with a previously agreed-upon deal instead of accepting the unsolicited $9.3 billion offer that Grupo Mexico made last week, more than two years after it had withdrawn from negotiations.
The news of Grupo Mexico’s surprise bid had previously disrupted local markets, causing the firm to lose billions in market capitalization. Following Citi’s announcement of the rejection on Thursday, Grupo Mexico shares rose more than 4.5%.
Last month, Citi announced plans to sell a 25% stake in Banamex to Mexican billionaire Fernando Chico Pardo, chairman of airport operator ASUR, for approximately $2.3 billion. The bank had intended to hold a public offering for the remaining portion of the unit while also exploring interest from other local business leaders.
Citi stated on Thursday that it believed the deal with Chico Pardo represented the best option to responsibly divest from Banamex and maximize shareholder value.
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