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Barclays values German units at €200m in Brexit move to Dublin


Barclays group CEO Jes Staley.

Barclays group CEO Jes Staley.

Barclays group CEO Jes Staley.

Barclays' German credit card business and its German corporate investment bank unit have been valued at a total of €200m, after it completed the transfer of the divisions to its Irish arm as part of its Brexit battle plan.

Barclays, whose CEO is Jes Staley, told investors during the summer that it planned to move ownership of all its European branches to Dublin, where the institution has a long-established presence.

Barclays is moving ownership of its German, French and Spanish branches to Ireland before the UK leaves the European Union in March.

The move is likely to see Barclays shift a total of about €250bn in assets to its Irish unit, which will make the Dublin-based bank the largest by assets in Ireland.

New filings at the Companies Registration Office in Ireland show that the transfer of the German business units was completed this month.

The filings show that accounting firm EY valued the two businesses at a total of €200m, based on the market value of the units if they had been put up for sale.

"We performed an independent assessment of the market value of the consideration, adopting an income approach, specifically a discounted cash flow to equity holders approach for the corporate investment bank business, and a dividend discount model for the credit card business," noted EY.

The filings do not show how much each unit was valued at, only the aggregate.

"We consider it appropriate to have valued the consideration as the aggregate of two separate operating business entities in order to estimate the market value," EY added in the filings.

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