Barclays Signs JV With CNP In Spain, Portugal, Italy
June 25 2009 - 12:42PM
Dow Jones News
Barclays Bank PLC (BARC.LN) and CNP Assurances SA (CNP), said
Thursday that they have agreed to establish a long-term life
insurance joint venture in Spain, Portugal and Italy.
MAIN FACTS:
-As part of this transaction, Barclays will sell a 50% stake in
Barclays Vida y Pensiones Compania de Seguros (BVP), Barclays
Iberian life insurance and pensions subsidiary, to CNP.
-Barclays will also enter into a 25-year agreement with CNP for
the marketing and distribution of life insurance and pension
products through Barclays retail network in Spain, Portugal and
Italy.
-The transaction is conditional on, amongst other things,
receipt of the necessary regulatory approvals and is expected to be
completed this year.
-CNP will pay Barclays an initial upfront consideration of
EUR140 million in cash on completion. This is subject to a
post-completion adjustment by reference to BVP's net assets as at
closing.
-An additional consideration of up to a maximum of EUR450
million will be payable to Barclays in cash over a period of 12
years, dependent upon the achievement of certain volume and margin
thresholds and Barclays branch openings, to maintain a balanced
sharing of the value created through the joint venture between the
two shareholders.
-Barclays intends to invest the proceeds from the sale in
developing its businesses in Spain, Portugal and Italy.
-This joint venture will support Barclays growth in these
countries, where the number of distribution points has already
increased from 600 in January 2007 to over 1,000 currently.
-By London Bureau, Dow Jones Newswires; +44 (0)20 7842 9296; ian.walker@dowjones.com