Barclays buys Standard Life's banking operation

Barclays Bank is to buy the banking operation of Scottish life insurance company Standard Life.

Standard Life Bank will be bought for £226 million by Barclays.

Its 270 members of staff will transfer companies and the name of the banking operation will be dropped as part of the deal.

Barclays and Standard Life have also agreed in principle to enter into a strategic partnership that will explore potential joint opportunities for the two companies in the UK financial sector.

The initial focus of the partnership is set to be on developing a new pension product.

Barclays Global Retail and Commercial Banking chief executive, Frits Seegers said: "We believe that we will be able to drive significant value for customers and shareholders - both through this acquisition and through the strategic initiative."

Standard Life group chief executive, Sir Sandy Crombie, said that the sale was agreed after his company came to the conclusion that the work of its banking operation was no longer in line with the organisation's long-term plans.

Updated: 28 October 2009.
Categories: banking-and-financial-services, market-and-industry-news.