(Alliance News) - Barclays PLC on Wednesday said it completed its multi-billion-pound acquisition of Kensington Mortgage Co Ltd.
The London-based bank said the purchase reinforced the commitment of its UK branch to the UK residential housing market.
Kensington Mortgage's portfolio had a total of GBP2.2 billion of loans at the time of completion of the acquisition, which Barclays will pay. On top of that, Barclays will pay GBP2.4 billion for the acquisition of Kensington Mortgage.
Barclays said the transaction has been paid from its existing resources, and is estimated to reduce its common equity tier 1 ratio by about 14 basis points compared to December 31, when it had a CET1 ratio of 13.9%. The bank said as part of the transaction, its UK unit is also buying Kensington Mortgage Services Ltd.
Barclays shares were 0.6% higher at 175.64 pence each in London on Wednesday afternoon.
By Tom Budszus, Alliance News reporter
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Barclays (BARC)