Citigroup Subsidiary Buys Aeromexico

The Mexican government agreed to sell its controlling stake in Aeromexico for $249 million to an investment group headed by Banamex, a Citigroup subsidiary, ending what had become an intense bidding war for the carrier. Among the rejected suitors was Mexicana.

The Associated Press reported that Banamex quickly announced plans to invest $240 million into the struggling airline over the next 90 days.

The battle to gain control of Aeromexico had heated up in recent weeks. Among the suitors vying for the carrier was its major competitor, Mexicana, which floated a bid of $200 million.

Mexicana found itself at odds with the Mexican government, its previous owner, which attempted to block the bid citing antitrust concerns.