Citigroup announced Wednesday it plans to pursue an initial public offering of its Mexico business, Banamex, making formal a long-telegraphed spinoff.

The bank expects to complete the separation in the second half of 2024, with a public offering likely to follow in 2025, it said. The company hasn’t yet decided on a listing destination, but a dual listing in Mexico and the U.S. could be possible, a source familiar with the plans told CNBC.

“After careful consideration, we concluded the optimal path to maximizing the value of Banamex for our shareholders and advancing our goal to simplify our firm is to pivot from our dual path approach to focus solely on an IPO of the business,” CEO Jane Fraser said in a press release.

Citigroup had been exploring a potential sale of the business. Media reports as recent as this month said a deal was close to being finalized at a valuation of roughly $7 billion.

Citigroup bought Banamex for $12.5 billion in 2001. The bank first said in 2022 that it would be exiting the business, which operates about 1,300 branches with more than 12 million retail clients and about 10 million pension fund customers. It counts approximately 38,000 employees.

The company also said Wednesday it would resume share buybacks this quarter. Shares of Citigroup fell nearly 2% in premarket trading Wednesday.

— CNBC’s Leslie Picker contributed to this report.

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