Barclays reportedly nears deal to offload UK merchant acquiring business to Canada’s Brookfield
British bank Barclays is reportedly set to offload ownership of its UK merchant acquiring division to Toronto-headquartered investment firm Brookfield Asset Management in a £650 million deal, according to a report by Sky News.
The deal will reportedly see Brookfield secure a 90% stake after three years
Sky News reports that Brookfield, which manages over $1 trillion in assets, will initially acquire a 10% stake in Barclaycard Payments, with its share set to increase to 90% three years after the deal closes, with Barclays retaining a 10% minority stake.
The report adds that through the deal, the bank is expected to invest £400 million into the unit to “fund investment in returning it to sustainable growth”, according to Sky News‘ sources, alongside a regulatory capital investment of approximately £250 million.
Sky News reported back in November that the two firms were in detailed discussions over a potential deal for the unit that could possibly see Barclays receive no up-front cash payment.
In February 2024, the bank wrote in its investor update that it was “considering options” for its merchant acquiring Payments business, with Bloomberg reporting at the time that Brookfield was among the parties interested in bidding for the unit.
Barclays and Brookfield declined to comment when contacted by FinTech Futures.
