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8/30/2016, 2:04 PM (Source: TeleTrader)
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Barclays pays €240.5 to divest retail unit in Italy

Mediobanca Group of Italy said on Tuesday that it agreed for its CheBanca! SpA to acquire Barclays Plc's retail unit in the country and added that the British-based financing institution has €240.5 in liabilities to bring the operations to break even. The overall losses of the subsidiary was £258 million (€302.7 million), booked for the final quarter of last year. The Italian retail business has 85 branches, 564 staff and 220,000 clients. Mediobanca says the deal doubles CheBanca in size.

The bank with headquarters in London said the move is part of efforts to run down the underperforming non-core assets and focus on the United Kingdom and the United States. It aims to strengthen its capital base by £35 billion by the end of next year. However, it continues to operate in the investment and corporate banking sector in Italy.

Barclays climbed 1.57% to 168.5 pence in London at 1:42 p.m. CET. At the same time, Mediobanca rose 1.57% to €6.48 at Borsa Italiana.

 

Breaking the News / IT