Dec 5 (Reuters) - Tycoon German Larrea's conglomerate Grupo Mexico SAB is in advanced talks to acquire Citigroup's Mexican retail bank Banamex, Bloomberg News reported on Monday, citing people with knowledge of the matter.

The mining giant is trying to finalize deal terms with Citi, but no agreement has been reached and another buyer could emerge, the report said. The lender could also consider an initial public offering (IPO) for the unit, it added.

Citi had disclosed in January that it was looking for a buyer for the unit, which has since reportedly drawn interest from a number of firms including Mexico's Banca Mifel SA and U.S. investment firm Apollo Global Management Inc.

Proposals to buy Banamex were submitted in October by suitors, including Mexican corporate titans Carlos Slim and Larrea, people familiar with the matter told Reuters at the time. In November, Mexican bank Grupo Financiero Inbursa said it had pulled out of the bidding process.

Citigroup Chief Executive Officer Jane Fraser has moved to simplify the Wall Street giant, which has been shrinking its overseas footprint by exiting non-core markets, with agreements to sell the bank's Bahrain and India consumer businesses announced earlier this year.

Citigroup spokesperson declined to comment on the Bloomberg report, while Grupo Mexico did not immediately respond to a Reuters request for comment. (Reporting by Manya Saini in Bengaluru; Editing by Sherry Jacob-Phillips)