2nd Oct 2006 09:00
Barclays PLC02 October 2006 2nd October, 2006 BARCLAYS PLC Barclays announces agreement for the disposal of vendor finance businesses to CIT Barclays Bank PLC ("Barclays") has agreed to sell certain of its vendor financebusinesses in the United Kingdom and Germany ("the vendor finance businesses")to CIT Group Inc. ("CIT") of the United States of America. The vendor finance businesses operate within Barclays Asset & Sales Finance,which is the specialist commercial asset finance provider within UK BusinessBanking. The vendor finance businesses provide asset finance to customers ofmanufacturers and suppliers in the industrial equipment and technology marketsthroughout the UK and Germany. The gross assets of the vendor finance businesses to be sold amounted toapproximately £1.1 billion as at 30th June 2006, about 12% of the gross assetsof Barclays Asset & Sales Finance. Approximately 60% of the gross assets to besold were originated in the UK with the balance in Germany. As part of theacquisition CIT will also take on the vendor finance sales and administrationstaff in the UK and Germany. Barclays will retain its successful controllinginterest in Iveco Finance. The completion of the sale is conditional upon receiving clearance from therelevant regulatory authorities and other customary closing conditions. Thetransaction is expected to close at the end of 2006. Naguib Kheraj, Group Finance Director, Barclays PLC, said: "This transactionleaves Barclays Asset & Sales Finance well positioned for its futuredevelopment. Significant investment will be focused on its core asset and salesfinance business including the ongoing expansion of its successful directleasing business. The future strategy of the vendor finance businesses is nowbest pursued within a specialised leading global provider of asset financesolutions." Jeffrey M. Peek, Chairman and Chief Executive Officer of CIT said: "We are verypleased with this transaction as it represents a major growth opportunity withina core business, accelerates our international expansion and solidifies ourposition as a leading provider of global vendor finance solutions." - ENDS - For further information please contact: Barclays Investor Relations Media Relations Mark Merson/James S Johnson Tracy Goodyer/Robin Tozer+44 (0)20 7116 5752/2927 +44 (0) 20 7116 6121/6586 CIT Investor Relations Media Relations Steve Klimas Andrew Walton, Financial Dynamics+1 973 535 3769 +44 (0) 20 7269 7204 C. Curtis Ritter +1 212 771 9603 About Barclays Barclays PLC is a major global financial services provider engaged in retail andcommercial banking, credit cards, investment banking, wealth management andinvestment management services. We are one of the largest financial servicescompanies in the world by market capitalisation. Operating in over 60 countriesand employing over 118,000 people, we move, lend, invest and protect money forover 25 million customers and clients worldwide. With over 300 years of historyand expertise in banking, Barclays has six major businesses. UK Banking delivers banking products and services to over 14 million retailcustomers and 788,000 businesses in the UK. UK Banking includes UK RetailBanking and UK Business Banking. Barclaycard is one of the leading credit card businesses in Europe and has 11.2million UK customers and 5.3 million international cards in issue. Barclays Capital, the investment banking division, provides corporate,institutional and government clients with solutions to their financing and riskmanagement needs. Barclays Global Investors is one of the world's largest asset managers and aleading provider of investment management products and services. The totalassets under management at 30th June, 2006 were US$1.6 trillion. Wealth Management serves affluent, high net worth and intermediary clientsworldwide, providing private banking, asset management, stockbroking, offshorebanking, wealth structuring and financial planning services. At 30th June, 2006,total client assets were £84.7 billion. International Retail and Commercial Banking is our global retail and commercialbanking operation, with over 2 million international clients, in geographieswhich currently include France, Spain, Portugal, Italy, India, Africa and theMiddle East. Absa has an additional 8.0 million retail customers in SouthAfrica. www.barclays.com About CIT CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company,provides clients with financing and leasing products and advisory services.Founded in 1908, CIT has US$68 billion in managed assets and possesses thefinancial resources, industry expertise and product knowledge to serve the needsof clients across approximately 30 industries worldwide. CIT, a Fortune 500company and a member of the S&P 500 Index, holds leading positions in vendorfinancing, factoring, equipment and transportation financing, Small BusinessAdministration loans, and asset-based lending. With its global headquarters inNew York City, CIT has more than 7,000 employees in locations throughout NorthAmerica, Europe, Latin America and Asia. www.CIT.com Disclaimer This document contains certain forward-looking statements within the meaning ofSection 21E of the US Securities Exchange Act of 1934, as amended, and Section27A of the US Securities Act of 1933, as amended, with respect to certain of theGroup's plans and its current goals and expectations relating to its futurefinancial condition and performance. These forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. Forward-looking statements sometimes use words such as 'aim','anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal','believe', or other words of similar meaning. Examples of forward-lookingstatements include, among others, statements regarding the Group's futurefinancial position, income growth, impairment charges, business strategy,projected levels of growth in the banking and financial markets, projectedcosts, estimates of capital expenditures, and plans and objectives for futureoperations. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, including, but not limited to,the further development of standards and interpretations under IFRS applicableto past, current and future periods, evolving practices with regard to theinterpretation and application of standards under IFRS, as well as UK domesticand global economic and business conditions, market related risks such aschanges in interest rates and exchange rates, the policies and actions ofgovernmental and regulatory authorities, changes in legislation, progress in theintegration of Absa into the Group's business and the achievement of synergytargets related to Absa, the outcome of pending and future litigation, and theimpact of competition - a number of which factors are beyond the Group'scontrol. As a result, the Group's actual future results may differ materiallyfrom the plans, goals, and expectations set forth in the Group's forward-lookingstatements. Any forward-looking statements made by or on behalf of Barclaysspeak only as of the date they are made. Barclays does not undertake to updateforward-looking statements to reflect any changes in Barclays expectations withregard thereto or any changes in events, conditions or circumstances on whichany such statement is based. The reader should, however, consult any additionaldisclosures that Barclays has made or may make in documents it has filed or mayfile with the SEC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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