Swedbank AB said Thursday it has agreed to acquire Barclays PLC’s stake in their jointly-owned credit card company, Entercard, taking full control of a business they started together in 2005.
The purchase price is based on 50% of Entercard’s equity, which amounted to approximately 5.2 billion Swedish kronor in the first quarter, the bank said.
The move makes Entercard, which has 1.5 million customers across the Nordic region, a wholly owned subsidiary of the Swedish lender.
The acquisition aligns with Swedbank's strategic plan to seek new growth, following its recent purchase of mortgage technology firm Stabelo.
"Today we are forming the largest card business in the Nordics and Baltics," said Tomas Hedberg, Deputy CEO of Swedbank.
"This creates even greater opportunities to strengthen our customer offering.”
Swedbank said the deal is expected to negatively impact its Common Equity Tier 1 capital ratio, a key measure of financial strength, by around 30 basis points.
The transaction is subject to regulatory approval, and Entercard will continue to operate under its own brand, the company said.
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