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Grupo Mexico is close to lining up financing to back a more than $7 billion bid for Citigroup's Mexican retail bank Banamex, according to people familiar with the talks.

German Larrea's conglomerate Grupo Mexico is in advanced talks on a potential acquisition of Citigroup's Mexican retail bank Banamex, people with knowledge of the matter said.

A group of investors led by Mexico's Banca Mifel and backed by the U.S. private equity giant Apollo Global Management are in talks with banks for about $2 billion of financing for their bid to buy Citigroup's Mexican retail unit Banamex.

President Andres Manuel Lopez Obrador said he approves of the two known remaining bidders for Citigroup's Mexican retail unit, after other potential buyers were derailed amid strict conditions put forth by Mexico's leader.

Citigroup is seeking a second and perhaps final round of bids for its Mexican retail arm Banamex by the end of October in what could be one of the year's biggest banking deals, according to people familiar with the matter. 

Citigroup’s planned sale of its Banamex unit should go to Mexican investors and avoid mass firings, Mexican President Andres Manuel Lopez Obrador said, adding new restrictions that may undermine some of the bids. 

A top mining magnate and a little-known bank backed by major global investors are among initial bidders for Citigroup’s Mexican unit, according to people with knowledge of the talks.

Citigroup has begun the sales process for its consumer, small-business and middle-market banking divisions in Mexico, though an initial public offering remains on the table.