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Barclays PLC is cashing out of its Nordic consumer credit venture, announcing Thursday that it will sell its 50% stake in Entercard Group AB to Swedbank AB for 2.6 billion Swedish kronor ($273 million). The move gives Swedbank full control of the company as it looks to cement its grip on the region’s credit card market.

The transaction, payable in cash, is based on Entercard’s March 31 valuation of 5.2 billion kronor. Swedbank, listed on Nasdaq Stockholm, said the acquisition underscores its long-term strategy of strengthening its footprint across Scandinavia and the Baltics.

A Partnership Ends After Nearly Two Decades

Entercard has been a joint venture between Swedbank and Barclays since 2005, serving 1.5 million customers across Sweden, Norway, Denmark, and Finland, with around 450 employees. Despite the change in ownership, Swedbank said Entercard will continue operating under its existing brand.

Tomas Hedberg, Swedbank’s deputy chief executive, framed the deal as a power play:

“Through this acquisition, Swedbank continues to invest in and develop our business. This transaction creates the largest card business in the Nordic and Baltic region.”

Entercard’s CEO, Jan Haglund, echoed the sentiment, calling Swedbank “the leading financial group in Sweden and the Baltics” and saying full ownership will enable the company to further strengthen operations.

Regulatory Green Light Needed

Before the deal closes, the acquisition must secure approval from the Swedish and Norwegian Competition Authorities, the Swedish Financial Supervisory Authority, and the Swedish Inspectorate of Strategic Products. Barclays said it expects the sale to wrap up by the end of 2025.

Strategy Behind the Deal

For Barclays, listed on London’s FTSE 100, the sale reflects its ongoing plan to shed non-core holdings and concentrate on core operations. The lender noted the divestment will release around £900 million ($1.22 billion) in risk-weighted assets and improve its CET1 ratio, a key measure of financial resilience.

For Swedbank, however, the acquisition comes with a cost. The lender warned that the purchase is likely to dilute its CET1 capital buffer, the cushion banks are required to maintain to absorb losses in times of financial turmoil.

Building Momentum in Banking Expansion

The Entercard buyout follows Swedbank’s recent deal, disclosed in July, to acquire a mortgage lender for 350 million kronor from a consortium including Avanza Bank AB. Analysts say the moves signal a broader strategy to expand Swedbank’s reach into both consumer lending and credit markets at a time of heightened competition.

Neither Swedbank nor Barclays disclosed their legal counsel for the transaction.