Caixabank To Buy Spain’s Barclays Retail And Corporate Bank Units

Caixabank will buy the Spanish retail and corporate banking operations of Barclays. Caixabank, Spain’s third-biggest lender and one of the most acquisitive banks during the recent financial crisis would be paying 800 million euros ($1.05 billion) for the Barclays businesses.

Caixabank barclays

This deal also includes wealth management and marks one of the first big steps in the bid of Barclays to exit most of its European retail banking businesses. This move is made after Chief Executive Antony Jenkins embarked on a turnaround plan to try and lift profitability.

In the next three years, Barclays will make thousands of job cuts as part of the restructuring. Barclays recently remarked it wants to refocus on its British and African businesses, credit cards, and investment banking in Britain and the United States. “We remain on track to rebalance Barclays,” Jenkins said in a statement on the sale.

It said Barclays will make a loss after tax on the sale of about 500 million pounds, with 400 million pounds of that to be reported in the 3rd quarter of 2014 and the rest on completion of the deal.

Earlier this year, Barclays parked its retail banking operations in Spain, Italy, France and Portugal in a “bad bank” so they could be sold, separated or floated. Caixabank will be taking on a 270 branch network and nearly 2,400 from Barclays, as well as 550,000 retail and private banking clients. Caixabank said the announced price was set on a value of the whole business of 1.7 billion euros as a whole.

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