Barclays acquires Expobank of Russia
by Gill Montia
Story link: Barclays acquires Expobank of Russia
Barclays is expanding in Russia with the purchase of Expobank, a retail and commercial bank with branches in and around Moscow and St Petersburg.
Currently, Barclays Capital, the bank’s investment business, has a presence in the country but the proposed acquisition, for £373 million, will mark its entry into Russian retail banking.
Expobank, which is owned by Petropavlosk Finance, has 32 branches and net assets of $186 million.
The acquisition is in line with Barclays’ strategy of building its presence in emerging markets with strong growth prospects.
News of the purchase has coincided with the election of Dmitry Medvedev, Russia’s new president.
It also comes at time when the relationship between Russia and the US is strained over Iraq.
However, a Barclays’ spokesperson has commented reassuringly: “The reality on the ground is that UK businesses are operating as usual. We’ve only had a positive reaction to our interest in the country.”
Completion of the transaction is expected this summer and should be earnings enhancing by 2011.
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