(Reuters) – 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 is planning to set up a new local unit in the country, and the deal will help it sidestep a lengthier approval process for a new license, according to the report.
Talks are in early stages and may not result in a deal, the report added. Any sale would require regulatory approval and Deutsche Bank would keep the brokerage it relaunched in the country earlier this year, Bloomberg Law reported.
“Citi has operated in Mexico for more than a century and the country will remain among Citi’s top institutional markets outside of the U.S.,” a spokesperson for the bank said.
“As we have said, we intend to continue to operate a locally licensed banking business in Mexico through our Institutional Clients Group (ICG), and our Private Banking Franchise,” the spokesperson added.
The ICG unit serves corporations, financial institutions and governments, while the private bank 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 businesses.
(Reporting by Niket Nishant in Bengaluru; Editing by Anil D’Silva and Maju Samuel)