Barclays has faked a “long -term” league with Brookfield Asset Management, aiming to “transform” its payments business as a standalone entity.
This business will continue to use the Barclaycard Payments Brand, serving as the unique payment payment service provider for Barclays clients for at least ten years.
The bank plans to invest nearly £ 400m ($ 531.8m) into the new venture, focusing most of this capital injection within the first three years.
Under the agreed terms, after the initial period of the tying up to the seventh year, Brookfield can acquire a 70% ownership share in the business.
This acquisition is subject to some conditions that are met, including the full recovery of Barclays of its investment.
Following the potential sale, Brookfield's initial financial incentive is expected to be transformed into an additional 10% share.
This could increase Brookfield's total ownership to about 80%.
Barclays plans to maintain a 20% stake in the after sales business.
The payment of payments processes annual payments for a diverse range of clients, from small businesses to large domestic and international corporations.
This collaboration sets out the opening transaction for Brookfield (“BFIP”) financial infrastructure partners, a department of Brookfield's private equity business investing in digital assets.
Barclays UK Corporate Bank CEO Matt Hammerstein said: “Finding a partner to support us to transform our payments business, in a way that will enable both of us to better serve the interests of our clients and follow a path to release the value of the business, shows a clear operation of our three -year plan to become a simpler, better and more balanced bank.
“We have a leading site in the UK, but we know that our payments clients are increasingly looking for integrated connectivity, end -to -end service and technological solutions tailored by their payments providers. Our partnership with Brookfield recognizes the opportunity within our business to go beyond the foundations we have built so far.”
Vice-Chairman of Brookfield and Head of Financial Infrastructure Ron Kalifa said: “We are excited to draw on our deep global payments expertise to partner with Barclays and together achieve the operational transformation required to create a market leader, well placed to drive the growth of the UK's digital economy with innovative and integrated payment solutions.”
In February this year, Barclays' Have completed the sale From his German Consumer Finance Operations to Bawag PSK, a sub -company for Bawag Group.