(Bloomberg) --Citigroup Inc. completed its acquisition of Deutsche Bank AG's Mexican bank license, a key step in setting up a separate institutional bank in Mexico as the lender prepares an initial public offering of its consumer unit there.
The license allows New York-based Citigroup to separate the institutional and private bank businesses from its consumer, small-business and middle-market operations in Mexico, a representative said in an emailed statement Monday. Terms of the sale weren't disclosed.
"This important step demonstrates our commitment to invest in and grow our leading institutional client franchise in the country," Citigroup said in the statement.
The move was previously reported by El Financiero.
Citigroup first agreed to buy Deutsche Bank's Mexican bank license last year amid plans to sell the consumer operation, which is known locally as Banamex. The Wall Street giant scuttled those plans after meddling in the deal by President Andres Manuel Lopez Obrador. The bank is now planning to list Banamex in an IPO in 2025.
Deutsche Bank began scaling down banking operations in Mexico in 2016, though last year it revived its brokerage house, which operates under a separate license.
The Frankfurt-based company confirmed the Citigroup deal in a statement to Bloomberg News and said it would continue to invest in its current platform in Mexico.
Deutsche Bank also promoted Marliz Mejia to chief country officer for Mexico, where she will retain the role of chief executive officer for Deutsche Securities Mexico, according to an internal memo seen by Bloomberg News. The memo also announced the exit of Juan Oberhauser, who had overseen the wind-down of banking operations.
--With assistance from Jenny Surane.
