Barclays Bank is reportedly in discussions with Brookfield Asset Management regarding the potential sale of an 80% stake in its merchant acquiring division.
In February, Barclays announced its intention to explore a sale or partnership for this division, which has faced challenges in staying competitive against rising rivals such as Stripe, Adyen, and Dojo.
Current reports from Sky News indicate that discussions with Brookfield are in the preliminary stages. It appears that Barclays is willing to part with 80% of the business while retaining a 20% share.
Valuation issues have posed challenges for Barclays, as potential investors have hesitated to invest significantly, particularly after the bank wrote down the division’s value by £300 million in December. Additionally, the recent acquisition of Barclays’ partner Takepayments by Global Payments may further impact revenues.
Although Brookfield may not pay upfront for the acquisition, it will need to make substantial investments in upgrading products and modernizing aging payment systems. The Canadian asset manager has previous experience in the merchant acquiring space following its acquisition of Network International last year.