By Xavier Fontdegloria


Banco Santander SA said Friday that it is out of the bidding process for Citigroup Inc.'s retail unit in Mexico, known as Banamex.

Santander had submitted a nonbinding offer for Banamex but the Spanish bank has been informed that it won't be continuing in the next stages of the process, it said.

Chairman Ana Botin said in February that Santander could be expected to be part of the bidding process for Banamex, but it wouldn't launch any capital increase to fund acquisitions.

"We have a great business in Mexico. We do not need to buy [Banamex]," she said.

The bid Santander submitted for Banamex was aligned to a disciplined approach to acquisitions, including a strict return on investment threshold, a person familiar with the matter said. The bank feels very comfortable that Citi has opted to proceed with other bidders, the person said.

Citigroup said in January that it would exit its Mexico consumer-banking business as part of a strategic shift.

Last week, Citigroup Chief Executive Jane Fraser told analysts the bank was pleased with discussions with multiple buyers but it was "very early in this process."


Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com


(END) Dow Jones Newswires

07-22-22 1432ET