M and A
Barclays To Sell French Wealth, Retail Business
Subject to regulatory approvals, completion is expected by the second quarter of 2017.
Barclays has agreed to sell its French retail, wealth and investment management business to AnaCap Financial Partners for an undisclosed sum.
The sale includes Barclays’ wealth and investment management
network operations, 74 of its retail branches, a life insurance
business and its brokerage operations. Current employees
will join AnaCap.
The deal completes Barclays’ exit from retail banking in
continental Europe. The group will continue to operate
corporate and investment banking in France.
Upon completion, the transaction is expected to result in a
reduction in risk weighted assets by about £500 million ($633
million), whilst annualised non-core costs will be reduced by
£130 million.
“The business in France is an attractive one, with a strong
customer base and proposition, but it is no longer central to our
strategy,” said Jes Staley, chief executive of Barclays
Group.
“This is another positive step in reducing our non-core unit,
creating a more focused, simpler Barclays, and thereby releasing
the strong performance of our core business,” he added.
The addressable market of Barclays’ retail banking and wealth
business operations total some €3.5 trillion ($3.4 trillion) of
assets, with an expected compound annual growth rate of 4 per
cent through to 2020, AnaCap said in a separate
statement.
“We look forward to working with the management team to create
the leading wealth manager for the affluent sector in France,”
said Nassim Cherchali, director of AnaCap.
AnaCap, headquartered in London, is a financial services private
equity firm. Its banking investments include Aldermore in the UK,
MeDirect in Belgium; Mediterranean Bank in Malta; Equa bank in
the Czech Republic; and FM Bank in Poland – recently rebranded as
Nest Bank.
