Citi Mexico suitor Mifel enlists Apollo, ADIA to fund bid -sources

By Pablo Mayo Cerqueiro and David French

LONDON/NEW YORK, Nov 27 (Reuters) - Mexico's Banca Mifel has lined up investors including Apollo Global Management and the Abu Dhabi Investment Authority (ADIA) to fund a bid for Citigroup Inc’s C.N Mexican retail bank, two sources familiar with the matter told Reuters.

The debt financing could attract more investors to join in Mifel's bid to buy Citibanamex, although there is enough funding already in place to fully support Mifel's proposal, one of the sources said.

The competition to buy one of Mexico’s biggest banks has narrowed to two bidders, with smaller rival Mifel, led by Daniel Becker, battling billionaire German Larrea's conglomerate Grupo Mexico GMEXICOB.MX . Another contender, billionaire Carlos Slim's Grupo Financiero Inbursa GFINBURO.MX , withdrew from the race on Wednesday.

The two remaining bidders are now conducting further due diligence on the business, also known as Banamex, the sources said. The U.S. banking giant is offloading the unit as part of Chief Executive Officer Jane Fraser's efforts to sell some international operations and simplify the firm.

The potential acquisition would transform Mifel. Banamex is Mexico's fourth largest bank by assets with a 11.9% market share, whereas Mifel holds less than 1% of the market, according to the latest data from the country's National Banking and Securities Commission.

Before the news of the backers emerged, some analysts had questioned whether Mifel, despite having private equity fund Advent International as a minority shareholder, could compete for Banamex, given the deep pockets of other suitors. Larrea's personal net worth is estimated at $23 billion, according to Forbes.

Citigroup, Apollo, ADIA and Advent declined to comment. Representatives from Mifel and Grupo Mexico did not immediately respond to emails and phone calls requesting comment.
Reporting by Pablo Mayo Cerqueiro in London and David French in New York, additional reporting by Hadeel Al Sayegh in Dubai, Saeed Azhar in New York and Valentine Hilaire in Mexico City; editing by Lananh Nguyen and David Gregorio

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.