UPDATE 1-Grupo Mexico will not engage in bidding war for Banamex

(Adds details) MEXICO CITY, Oct 7 (Reuters) – Grupo Mexico will not enter a bidding war for Citi's retail unit in the country, known as Banamex, as its offer already places the lender at a higher value than a previously accepted competing bid, the miner and transport conglomerate said on Tuesday. Grupo Mexico's bid launched last week includes plans to retain 60% of the investment and sell the remaining 40% to Mexican private investors and pension funds, it said in a filing. The company said it already has agreements for the 40% portion it would sell off, and that it would consider launching a public offering at a later date to include smaller investors. The miner would also not plan on significantly raising its debt load to fund the purchase, it said. The most needed would be under $2 billion, already covered through agreed-upon credit lines, Grupo Mexico added. The competing offer from Grupo Mexico comes after Citi announced last month it would sell a 25% stake in Banamex to Mexican billionaire Fernando Chico Pardo, chairman of airport operator ASUR . (Reporting by Natalia Siniawski; Editing by Kylie Madry)

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