Barclays has signed an agreement to sell its UK Trust business to ZEDRA, an independent global specialist in trust, corporate and fund services, with offices in 10 jurisdictions.
While an attractive business with strong growth potential, the UK Trust business is no longer central to Barclays’ strategy and was moved to Barclays Non-Core.
Clients of Barclays UK Trust will become clients of ZEDRA upon completion of the transaction. Transferring clients will then benefit from ZEDRA’s full product range. Barclays remains committed to providing its UK Trust customers and clients with a full level of service until the transfer occurs.
Commenting on the sale, Harry Harrison, Head of Barclays Non-Core, said: “The sale of the UK Trust business represents further progress in reducing the portfolio of Barclays Non-Core. In 2016 alone we have agreed the sale of Barclays Bank Egypt, our Asian Wealth and Southern Europe cards businesses, completed the sale of our Portuguese retail bank and entered exclusive discussions for the potential sale of our French retail network. Our ongoing Barclays Non-Core progress is a key element of the Group strategy announced on 1 March."
Akshaya Bhargava, CEO, Barclays Wealth, Entrepreneurs and Business Banking said: “Barclays already holds a minority stake in the ZEDRA following the sale of the Offshore Trusts business in Jersey, Guernsey, Isle of Man, Cayman Islands, Singapore and Switzerland to the same group in January 2016. The minority stake demonstrates Barclays’ interest in the ongoing success of this business and its commitment to supporting continuing relationships with clients and the advisory community."
“We know from experience that in ZEDRA we have found a buyer that satisfies our core criteria of being able to maintain exceptional service for our clients, is able to integrate and enhance the careers of our colleagues and who demonstrated a commitment to taking this business forward. Our priority is supporting all our impacted colleagues and clients throughout this transition. I want to take this opportunity to thank our colleagues in the business we are selling for their hard work and professionalism, which has built strong client relationships over many years and has made this business so attractive to ZEDRA.”
Niels Nielsen, ZEDRA CEO said, “This is an important strategic acquisition for us and we welcome the staff and clients of Barclays UK Trust to the ZEDRA Group. The move adds to our UK capabilities and other services we already provide. This development marks another step in our growth plan offering clients a balanced and global geographic reach”.
The transaction is subject to regulatory approval. Terms of the sale are not disclosed. The sale is expected to have a minimal impact on Barclays reported financials.