CaixaBank to buy Barclays' Spanish ops

[MADRID] CaixaBank, Spain's third-biggest lender, agreed to buy banking operations in the country from Barclays plc for about US$1.1 billion in cash to expand its business as economic growth picks up.

The sale includes retail banking, wealth and investment management and corporate banking businesses, CaixaBank, based in Barcelona, said in a statement on Sunday. The price represents about 40 per cent of the book value, it said.

CaixaBank will add about 270 branches to its existing network of 5,695 and boost its client base by 550,000 to more than 14 million by buying the businesses from Barclays with assets of about 22 billion euros (S$36.12 billion). The purchase follows Banco Bilbao Vizcaya Argentaria's decision in July to acquire nationalised lender Catalunya Banc as the country's economic recovery picks up momentum and spurs deals.