Barclays Provides the Bidders With the Sales Prospectus

7/07/2014  – Expansion

Last Thursday, Barclays España facilitated a sales prospect of its Spanish business to the entites which wanted to submit their firm offers. The announcement of the intention to sell the branch, not including the credit cards, the investment and the private banking, was made public at the beginning of May.

At first, three national giants showed interest in acquiring Barclays´s subsidary: Santander, BBVA and CaixaBank, but other entities also might have received the prospectus. In spite of high risk, the portfolio includes offices in strategic areas (mainly in Madrid and Aragon), as well as over 500.000 medium, medium-high income customers.

However, the bank seems very unbalanced in terms of the credit-deposit relation, as the first posts €18 billion, while the other only €9 billion, completed by the ECB´s appeal of €5 billion and an over €3 billion bank indebtness.

Caixabank seems the sure bet as it strives as growing in Madrid.

Analysts estimate the orientantive price for Barclays marks around €1.5 billion, cut down to a third part when the bidders made their first calculations. The bank expects to close the operation before the end of July.

Moreover, in the middle of the sale, the Bitish entity started to consider waiving the auction and keeping the branch, with the nuance that in such case 271 office would be shut and 2.819 employees dismissed. The sector believes the news on the sale has discouraged many present customers of Barclays España.


Original article: Expansión (by Salvador Arancibia)

Translation: AURA REE