Barclays PLC BCS is in advanced discussions to sell its US wealth management unit to Stifel Financial Corp. SF. The deal could be announced next week.
Per a Reuters report, Stifel Financial is discussing related key aspects with Barclays. The estimated deal value was not revealed. However, there is still no certainty about the deal and the UK based banking giant may move to other interested parties.
Barclays purchased the unit from Lehman Brothers in September 2008 for $1.75 billion, after the investment bank collapsed. The business, which was once promising, is currently viewed by Barclays as a non-core business. Hence in recent times the company has been exploring potential buyers for offloading the business.
For St. Louis-based Stifel Financial, the deal would fortify its wealth management business. Notably in February, the company announced a merger agreement with Birmingham-based Sterne Agee for $150 million. The merger is set to strengthen Stifel Financial’s wealth management and fixed-income business.
Barclays currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the foreign banks space include UBS Group AG UBS and HSBC Holdings plc HSBC. Both the stocks sport a Zacks Rank #1 (Strong Buy).
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