Citigroup is considering a deal to buy Deutsche Bank’s Mexican banking arm, as per sources. Details on the expected deal size were not available. Citi is weighing to set up a new local unit in the country that can help it sidestep a lengthy approval process to acquire a new license. Talks are said to be in early stages and a confirmed deal is not guaranteed. A Citigroup person said that the bank has operated in Mexico for over a century and the nation will remain among its top institutional markets outside of the US. He added that Citi “intends to continue to operate a locally licensed banking business in Mexico through Institutional Clients Group (ICG), and Private Banking Franchise.” Citigroup CEO Jane Fraser said in April that the bank has begun the process for selling off its consumer, small-business, and middle-market banking divisions in Mexico.
Citi’s dollar bonds were trading flat with its 5.95% Perp at 99.14, yielding 7.26%.
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