Banco Santander, S.A. (BME:SAN) is among lenders exploring bids for Citigroup Inc. (NYSE:C)'s retail-banking operations in Mexico, according to people with knowledge of the matter. Citigroup may seek a valuation of as much as $15 billion in a full sale, said the people, who asked not to be identified discussing information that isn't public. The business could also draw interest from banks including Grupo Financiero Banorte, S.A.B. de C.V. (BMV:GFNORTE O) and The Bank of Nova Scotia (TSX:BNS), the people said.

Deliberations are in the early stages and may not lead to a transaction, and Citigroup, which is using its own bankers, hasn't yet started a formal auction, said the people. Representatives for Citigroup, Madrid-based Santander, Toronto-based Scotiabank and Mexico's Banorte all declined to comment. Citigroup announced January 11, 2022 that it's planning to exit its consumer, small-business and middle-market banking operations in Mexico amid a broader revamp by Chief Executive Officer Jane Fraser, who is overhauling the New York-based firm's strategy.

In Mexico, the exit of the deposit-taking business could take the form of a sale or public-market alternative, said Citigroup, which will keep its institutional businesses in the country. For Santander, a deal in Mexico would underpin the bank's global ambitions and reallocate capital to a higher-interest-rate environment with better prospects for growth than Europe offers. The move would make Santander -- which also has a large presence in Chile and Brazil -- a stronger challenger to Banco Bilbao Vizcaya Argentaria SA.