Barclays Nears Deal to Sell Merchant Acquiring Business to Brookfield

Barclays is finalizing a deal to sell its merchant acquiring business to Canada’s Brookfield Asset Management. The agreement, valued at £650 million, will initially see Brookfield acquire 10% of the division, with an option to purchase an additional 80% after three years, leaving Barclays with a 10% stake.

The merchant acquiring unit has faced stiff competition from rivals like Stripe, Adyen, and Dojo, prompting Barclays to explore a sale or partnership earlier this year. The deal has been complicated by valuation concerns, with Barclays writing down the business by £300 million in December.

Barclays will inject £400 million into the division to fund upgrades and ensure sustainable growth, alongside providing £250 million in regulatory capital to secure approval.