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