Barclays PLC (LSE:BARC) has agreed to sell its 50% stake in Scandinavian consumer credit provider Entercard Group to joint venture partner Swedbank, in a deal that values the business at SEK 5.2 billion (£400 million).
Barclays said the sale will be completed at book value, estimated at SEK 2.6 billion (£200 million) for its share as of March 2025, with Entercard repaying funding equivalent to circa £1.2 billion currently provided by Barclays.
The transaction is expected to release £0.9 billion of risk-weighted assets, adding about 4 basis points to its common equity tier 1 ratio, when the deal is completed, which is anticipated by the end of 2025, subject to regulatory approval.
Founded in 2005, Entercard provides consumer credit across Sweden, Norway, Denmark and Finland. It has SEK 36 billion of assets, 1.5 million customers and 450 employees.
Swedbank deputy chief executive Tomas Hedberg said the deal will lead to the formation of the largest card business in the Nordics and Baltics.
Jan Haglund, chief executive of Entercard, added: “For 20 years, Entercard has been on a strong growth journey. Becoming a full part of Swedbank, the leading financial group in Sweden and the Baltics, creates new business opportunities to further strengthen our operations.”
Barclays Principal Investments Limited and Swedbank have co-owned Entercard since its creation. Entercard will continue to operate under its own brand.