Daily Management Review

Is There Any Truth In Barclays' Possible Merger Deal With StanChart?


05/24/2018


The reports that were circulated claiming a rival tie up in the sector, is being said to be wrong, even though Barclays is facing pressure from the investors to boost up its profits in the investment banking branch.



Barclays Plc will not be undertaking any “potential merger” with its rivals” confirmed two close sources of the bank. As a result, the media report claiming Barclays’ possible merger deal considerations, even one with “Standard Chartered, bears no ground.
 
The report, however, published by Financial Times claimed that senior members of the board at Barclays were “exploring a deal with another bank”, while John McFarlane, the chairman of Barclays, showed keen interest in extending a tie up with StandChart. However, comments on the report of Financial Times were declined by both the parties, “Barclays and Standard Chartered”.
 
According to FT, the tie ups were a step under a “wide-ranging contingency plans” under consideration as the bank was feeling the “activist investor” Edward Bramson’s pressure, who also happens to be among the “biggest shareholders” of the bank.
 
Following the “aggressive” investment banking push led by the bank’ chief executive, Jes Staley, Barclays is facing the heat to hike its profits. However, as mentioned earlier, Reuters was informed by two close sources of the bank on Wednesday, May 23, 2018 that no such merger deal was being look into while “Barclays had no plans to combine its operations with any of its rivals”.
 
While Reuters also added:
“Bramson’s fund Sherborne Investors has called on Barclays to end the bulk of trading activities at its investment bank, in a radical plan to cut costs and boost returns at the British lender, three sources familiar with the matter have told Reuters”.
 
 
References:
reuters.com







Science & Technology

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

World Politics

World & Politics

Brexit Negotiators Of Both Parties Close Down On Irish Border Text, Reports RTE

Bloomberg: Theresa May can face catastrophic defeat in parliament

New Asian Foreign Policy May Be Set By Congress After Democrats Taking Control Of House

Italy refuses to change draft budget

Italy is about to tighten its migration policy

Macron calls to create a pan-European army

Signals Of Mending Of US-China Emerge Before Anticipated G20 Meet

Moscovici: the European Commission may impose sanctions on Italy