Barclays has re-entered talks about a heavily structured deal to offload a stake in a major division of its British operations to Brookfield, the asset management giant.
Sky News has learnt that the high street bank is in detailed discussions with Brookfield about it becoming a shareholder in its UK merchant acquiring arm.
The talks with Brookfield and other suitors have stalled several times since Barclays confirmed in February that it was exploring a sale or partnership of the division.
However, they are now said to be back on, with the Canadian asset manager plotting the acquisition of a majority stake in it.
One source close to Barclays said the deal under discussion would involve Brookfield to bear the costs associated with growing the business, rather than paying a significant up-front sum for the stake.
Estimates of the value of Barclays’ merchant acquiring arm have varied wildly, ranging from less than $1bn to $2.5bn.
The valuation attributed to it in the current discussions was unclear on Tuesday.
‘Best and worst’ UK banks for customer satisfaction revealed by poll
Barclays latest bank to lift bonus cap
HSBC’s boss is leaving on a high – but his successor faces tougher times
The talks come with Barclays in a position of comparative strength under its chief executive, CS Venkatakrishnan.
Its shares have soared by 65% over the last year as investors have digested progress in the performance of its investment banking arm.
A Barclays spokesperson said: “As we confirmed at our February investor update, we are exploring a number of options for investment in our market-leading merchant acquiring business, including strategic partnerships.
“We will provide any further updates in due course.”
Keep up with all the latest news from the UK and around the world by following Sky News
Be the first to get Breaking News
Install the Sky News app for free
Brookfield declined to comment.
