A Sign of Trust: Fernando Chico Pardo Invests in Banamex

After Citigroup announced it would sell 25% of its shares in Banamex, Mexican entrepreneur Fernando Chico Pardo is making headlines with his $2.3 billion investment. This strategic move is seen as a vote of confidence in the Mexican government and the country's economic potential. The transaction, which is expected to be completed next year following approval from Mexican regulators, follows Citigroup's January 2022 announcement of its plan to withdraw from retail banking in Latin America. At that time, Mexico's then-President, Andrés Manuel López Obrador, expressed a desire for the bank to be "Mexicanized," as foreign banks tend to repatriate profits rather than reinvest them in Mexico. Chico Pardo emphasized that he began deeper negotiations with the US financial giant six months ago. He views the necessary foreign investment as a complement to domestic investment to advance the economy. Citigroup acquired Banamex, one of Mexico's largest banks, in 2001. Under Citigroup's leadership, Banamex became the country's fourth-largest bank, with a network of 1,300 branches and 13 million customers. The experienced entrepreneur Chico Pardo, currently serving as Chairman of ASUR, is also the head of Promecap, a private equity firm. His plans include taking the remaining part of Banamex public, while he remains the primary shareholder.