"Analysts said that although Monday's deal is too small to have a significant impact on Barclays' operations"
Since $226M is too small.... a buyout of what's left of Lehmans should be just what the doctor ordered.
UPDATE: Barclays To Buy UK's Standard Life Bank For GBP226 Million
(Adds company and analyst comment and detail.)
By Patricia Kowsmann
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Barclays PLC (BCS) said Monday that it will buy the banking operations of U.K.'s Standard Life PLC (SL.LN) for GBP226 million in cash, as the bank continues to expand its retail and commercial operations.
Barclays will acquire a savings book of GBP5.5 billion as of June 30 and a mortgage book with outstanding balances of about GBP8.8 billion, it said.
Barclays' U.K. retail banking division had total customer deposit balances of GBP88.5 billion and a total mortgage book of GBP84.4 billion at June 30.
The U.K. bank has been looking to expand in the U.K. and abroad as some peers hard-hit by the financial crisis downsize operations. Barclays recently bought Citigroup Inc.'s (C) credit card business in Portugal, and is in talks to acquire retail and merchant banking assets in Italy from two local banks.
Analysts said that although Monday's deal is too small to have a significant impact on Barclays' operations, it underscores the bank's efforts to increase profit from its retail and commercial banking operations. Barclays' investment banking division has been the main profit driver for the group, especially following its acquisition of Lehman Brothers' operations in the U.S.
The bank said about 270 Standard Life employees will transfer to Barclays following the acquisition.
"This transaction brings to Barclays high-quality savings and mortgage books, and an attractive customer base," said Frits Seegers, head of Barclays Global Retail and Commercial Banking.
Barclays also said it and Standard Life agreed to jointly explore opportunities in the U.K. retail savings and investments sector.
At 1348 GMT, Barclays shares were down 5 pence, or 1.3%, at 357 pence, while Standard Life was flat at 230 pence.
Company Web site: www.barclays.com
