Citigroup Inc. is weighing a deal to buy Deutsche Bank AG’s Mexican bank, Bloomberg Law reported on Tuesday, citing people familiar with the matter.
Citi plans to set up a new local unit in the country, and the agreement will help it avoid the lengthy approval process for a new license, according to the report. (Https://bit.ly/3lGT9f4)
Negotiations are at an early stage and may result in no agreement, the report added. Any sale would require regulatory approval and Deutsche Bank would keep the brokerage back in the country earlier this year, Bloomberg Law reported.
“Citi has been operating in Mexico for more than a century and the country will remain one of Citi’s top institutional markets outside the United States,” a bank spokesman said.
“As we have said, we want to continue our locally licensed banking business in Mexico through our Institutional Client Group (ICG) and our private banking franchise,” the spokesman added.
The ICG unit serves corporations, financial institutions and governments, while the private banking segment caters to wealthy individuals and families.
Deutsche Bank declined to comment
Citi said earlier this year that it would exit its Citibanamex consumer banking business in Mexico, ending its 20-year retail presence in the country that was the last of its overseas consumer business. (Reporting by Niket Nishant in Bangalore; Editing by Anil D’Silva and Maju Samuel)