Barclays to buy Lehman division for $1.75B
Barclays PLC will acquire the North American investment banking business from bankrupt Lehman Brothers Holdings Inc. for $1.75 billion, two days after it ditched plans to acquire the investment bank whole.
Barclays PLC will acquire the North American investment banking business from bankrupt Lehman Brothers Holdings Inc. for $1.75 billion, two days after it ditched plans to acquire the investment bank whole.
Under the terms of the deal, London-based Barclays will pay $250 million in cash for Lehman’s North American investment banking and capital markets operations, according to a statement on Barclays website.
The business employs about 10,000 people.
The operations have trading assets with a current estimated value of $72 billion and trading liabilities with a current estimated value of $68 billion.
Additionally, Barclays will pay $1.5 billion for Lehman’s New York headquarters and two data centers in New Jersey.
The acquisition agreement may be terminated if it is not completed by Sept. 24.
Over the weekend, a deal between Barclays and Bank of America Corp. of Charlotte, N.C,. to purchase Lehman in its entirety broke off because both companies did not receive government guarantees to protect them from losses in Lehman’s mortgage portfolio.
On Monday, the 158-year-old firm filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York.
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