2nd UPDATE: Barclays Buys UK's Standard Life Bank For GBP226 Million
26 Octubre 2009 - 11:10AM
Noticias Dow Jones
Barclays PLC (BCS) said Monday that it will buy the banking
operations of U.K.'s Standard Life PLC (SL.LN) for GBP226 million
in cash, as the bank continues to expand its retail and commercial
operations.
Barclays will acquire a savings book of GBP5.5 billion as of
June 30 and a mortgage book with outstanding balances of about
GBP8.8 billion, it said.
"The acquisition will increase our mortgage book by 10% [from
GBP84.4 billion] and increases our savings book by about 6% [from
GBP88.5 billion]. And we are getting it a discount" of 23% from net
asset value, Frits Seegers, head of Barclays Global Retail and
Commercial Banking, told Dow Jones Newswires.
Seegers also said the bank will get 270 Standard Life employees
based in Scotland, bringing its total number of employees there to
about 1,270.
"We are looking at expanding our retail banking operations, as
well as our commercial banking operations in Scotland," he
added.
The U.K. bank has been looking to expand in the U.K. and abroad
as some peers hard-hit by the financial crisis downsize operations.
Barclays recently bought Citigroup Inc.'s (C) credit card business
in Portugal, and is in talks to acquire retail and merchant banking
assets in Italy from two local banks.
Seegers declined to comment on any acquisition targets.
Analysts said that although Monday's deal is too small to have a
significant impact on Barclays' operations, it underscores the
bank's efforts to increase profit from its retail and commercial
banking operations. Barclays' investment banking division has been
the main profit driver for the group, especially following its
acquisition of Lehman Brothers' operations in the U.S.
Barclays also said it and Standard Life agreed to jointly
explore opportunities in the U.K. retail savings and investments
sector.
Along with the now-sold banking assets, Standard Life has
insurance and investment-management operations and about 10,000
employees worldwide.
Near the close, Barclays shares were down 9 pence, or 2.6%, at
352 pence, while Standard Life was down 4 pence, or 1.5%, at 227
pence in an overall lower market.
Company Web site: www.barclays.com
-By Patricia Kowsmann, Dow Jones Newswires. Tel
+44(0)207-842-9295, patricia.kowsmann@dowjones.com