By Max Colchester
Barclays PLC has bought out French insurer CNP Assurances' 50%
stake in their Spain-based joint-venture, CNP Barclays Vida y
Pensiones, for EUR453 million ($554 million), including a special
dividend.
The deal, which remains subject to regulatory approval, is
expected to be completed before the end of the first half of
2015.
In 2009 Barclays and CNP Assurances entered into a 25-year
joint-venture as the two companies sought to expand their life
insurance business across Spain, Portugal and Italy.
However, Barclays reined in its global ambitions and in
September announced it would sell its Spanish retail banking
division to Caixabank SA at a loss. CNP Assurance was subsequently
able to exercise an option to exit the joint-venture with Barclays
as there has been a "transformation" in the business following the
sale, according to one person familiar with the matter.
A spokeswoman for Barclays confirmed the deal was taking
place.
The Spanish life insurance business currently resides in
Barclay's noncore division. CNP Assurances Chief Executive Frédéric
Lavenir said in a statement that the French insurer remained
"committed to expanding in Southern Europe" through its Spanish
subsidiary, CNP Partners.
Write to Max Colchester at max.colchester@wsj.com
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