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.