Key Transaction Details
In a significant development for Mexico’s financial sector, Citi has sold 25% of Banamex to Mexican businessman Fernando Chico Pardo for approximately $2.3 billion (around 42,000 million pesos). This deal is not only one of the largest in recent years due to its high value but also because of the controversial circumstances surrounding it.
Who is Fernando Chico Pardo?
Fernando Chico Pardo, ranked eighth on Forbes Mexico’s 2025 billionaires list with an estimated fortune of around $2.8 billion, is now entering the banking scene. His financial expertise began on Wall Street and later in Mexico with Acciones y Asesoría Bursátil, which merged into Inbursa. Currently, Chico Pardo serves as the president of Grupo Aeroportuario del Sureste (ASUR) and leads Promecap, a leading private capital firm managing $5 billion in assets.
Banamex’s Future and Market Expectations
With this transaction, Banamex, a 141-year-old institution, embarks on a new chapter in its Mexican history. The bank aims to strengthen all lines of business, advance digital and operational transformation, and solidify its market leadership through customer preference. Manuel Romo will continue as the group and bank’s director general, while the current management team remains intact.
Banamex anticipates completing the initial public offering (IPO) in the second half of 2026, which will be a dual placement in Mexico and New York. The valuation and price are yet to be determined, with analysts estimating a $3.5 billion stock market placement.
Economic Outlook and Currency Fluctuations
Private sector experts surveyed by Banxico have revised their growth projections downward for Mexico’s GDP. They now estimate a 0.37% growth rate, down from the previous 0.39%. This marks the third consecutive reduction in their growth expectations, moving further away from their initial 1.07% forecast.
Private forecasts have become increasingly pessimistic regarding the year-end economic performance. Meanwhile, the Mexican peso has strengthened, demonstrating a direct correlation with the weakening US dollar.
The peso appreciated by 0.13% or 2.3 centavos compared to the previous session, closing at 17.98123 pesos per dollar according to Banco de México data.
This peso appreciation parallels the 0.09% weakening of the dollar, as measured by the weighted index. This behavior follows recent statements from Fed officials supporting the latest interest rate cut and leaving room for further adjustments.
Three primary factors contribute to the Mexican peso’s strength: President Trump’s efforts to weaken the US dollar, speculative carry trade activities exploiting low interest rates in some countries and high rates in others, and Mexico’s investment appeal.
