(Bloomberg) -- Grupo Mexico SAB is close to lining up financing to back a more-than $7 billion bid for Citigroup Inc.’s Mexican retail bank Banamex, according to people familiar with the talks. 

Grupo Mexico, the conglomerate run by mining magnate German Larrea, is in talks with banks including Barclays Plc and HSBC Holdings Plc, the people said, requesting anonymity since the talks are private. At one point in the talks the amount of financing reached around $5 billion, but the size and price of the offer were still in discussion, one of the people said.

No deal has been reached and the negotiations could still fall apart, the person said. Representatives for HSBC and Barclays declined to comment.

Reuters reported Wednesday that Grupo Mexico had secured $5 billion in financing in a deal that valued Banamex between $7 billion and $8 billion. 

Bloomberg reported in December that Grupo Mexico was in advanced talks with Citi to purchase Banamex. The pool of potential bidders dwindled after Mexican President Andres Manuel Lopez Obrador placed conditions on any deal, including his preference that Mexican capital back the transaction.

Citigroup Chief Executive Officer Jane Fraser is visiting Mexico this week, and was set to meet on Wednesday with Lopez Obrador. No announcement on the Banamex sale is expected during the visit, a person familiar with the matter has said. The Mexican president said he would discuss the matter with Fraser. 

(Updates with Barclays in third paragraph.)

©2023 Bloomberg L.P.