Barclays is facing challenges in selling a stake in its UK merchant payments unit, as potential buyers are hesitant about the bank’s valuation of the business, according to Reuters.
In December, Barclays announced it was exploring options for the merchant payments division and had reduced its value by £300 million. However, the sale process has proven difficult, with Brookfield Asset Management being one private equity firm that has opted out due to pricing concerns.
Additionally, complications have arisen following the takeover of Barclays partner Takepayments by Global Payments, which could potentially impact revenues, according to sources cited by Reuters. In June, CEO CS Venkatakrishnan highlighted that the complexity of the technology and financial arrangements contributes to the challenges surrounding any potential deal.
This pursuit of a buyer occurs amidst a broader sell-off in the European payments sector, with companies like Adyen, Nexi, and Worldline also grappling with revenue outlook issues. A spokesperson for Barclays stated, “As we confirmed at our February investor update, we are exploring a number of options for investment in our market-leading merchant acquiring business, including strategic partnerships.”