TOP NEWS: Barclays buys credit card portfolio issued by retailer GAP

(Alliance News) - Barclays PLC on Friday said it has struck a deal to acquire a portfolio of ...

Alliance News 27 August, 2021 | 10:04AM
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(Alliance News) - Barclays PLC on Friday said it has struck a deal to acquire a portfolio of credit cards issued by retailer the Gap Inc.

The FTSE 100 constituent agreed the deal with financial services firm Synchrony Bank. The portfolio consists of about USD3.8 billion average receivables, as at June 2021. The deal is expected to be sealed in the second quarter of 2022.

"The acquisition follows the April 2021 agreement between Gap and Barclays Bank Delaware under which Barclays Bank Delaware will issue co-branded and private label credit cards in the US to Gap customers beginning in the second quarter of 2022," Barclays explained.

Terms of the acquisition will depend on valuation movements up to completion. Should the deal have been completed in June or example, Barclays would have stumped up USD3.9 billion.

Barclays added: "The acquisition, which is being financed from Barclays' existing resources, is estimated to reduce Barclays' CET1 ratio by approximately 20 basis points."

Barclays shares were 0.2% lower at 184.20 pence each in London on Friday morning.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Barclays PLC 202.80 GBX 1.10

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