Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Barclays approves 13.5 bln dlr sale of investment unit

LONDON, Aug 6 – British bank Barclays on Thursday said its shareholders had overwhelmingly approved the sale of its investment arm to US asset manager BlackRock for 13.5 billion dollars (9.4 billion euros).

Barclays said 99.9 percent of voters backed a deal announced in June to sell Barclays Global Investors (BGI) as the bank seeks to shore up its finances without government help.

Under the deal, Barclays will own 19.9 percent of a new company to be called BlackRock Global Investors.

Meanwhile the British bank will realise a net gain of about 5.3 billion pounds (6.2 billion euros, 8.9 billion dollars) to cement its balance sheet.

Barclays last year won a seven-billion-pound capital injection largely backed by investors from Abu Dhabi and Qatar, as it sought to survive the credit crunch without government aid.

However, Abu Dhabi recently sold most of its holding.

Two of Barclays\’ main British rivals, Lloyds Banking Group and the Royal Bank of Scotland (RBS), are now government-controlled, bailed out by the taxpayer in the wake of huge losses arising from the global financial crisis.

RBS was also felled by its role in the 2007 consortium takeover of Dutch bank ABN Amro — following a bid battle which Barclays lost.

The record-breaking ABN deal was clinched before the credit crunch erupted in August 2007, sending global markets slumping and economies tumbling.

The BGI purchase, which has yet to be approved by BlackRock shareholders, will double BlackRock\’s size and create a firm managing assets worth some 2.7 trillion dollars, employing more than 9,000 people in 24 countries, according to the New York-based investment group.

Advertisement. Scroll to continue reading.

The deal, which includes BGI\’s market-leading iShares trading platform, has also sparked speculation about renewed mergers and acquisitions activity — despite jitters about the world economic downturn.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...