CaixaBank has agreed to acquire Barclays’ retail banking business in Spain for approximately EUR800m ($1.1bn) as the British bank undergoes major restructuring.
The sale also includes Barclays’s wealth and investment management and corporate-banking divisions in Spain.
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However, the deal excludes the Barclays’ Spanish investment banking business and Barclaycard.
The deal will add about 270 branches to CaixaBank’s existing network and boost its client base by 550,000 to more than 14 million.
In a presentation sent to the Spanish stock market regulator, CaixaBank said it sees EUR150 million net cost savings in 2016 from the deal. The transaction will contribute about EUR80 million to net results in 2016, with restructuring costs seen at about EUR300 million.
Commenting on the deal, CaixaBank chief executive Gonzalo Gortázar Rotaeche said: "This acquisition will enable us to enhance our personal and private banking businesses in Spain, strengthening our counselling offer to our customers, and will enable us to accelerate organic growth due to the improving economic context."
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By GlobalDataThe deal is part of Barclays’ global retrenchment policy as it seeks to shed less-profitable units. Barclays is expected to cut 19,000 jobs in the next three years as part of the restructuring.
The execution of the sales agreement is scheduled for the end of the year and is subject to obtaining authorisation from the competent agencies and regulatory entities.
