Barclays PLC is exploring a potential merger with rival banks including Standard Chartered PLC
Barclays Chairman John McFarlane is said to be, at least theoretically, keen to combine the bank with StanChart, and was backed by Gerry Grimstone, chairman of unit Barclays International. Barclays directors have also reportedly discussed options to expand the lender's ring-fenced business in the U.K., as well as "hypothetical combinations" with Germany's Deutsche Bank AG, Credit Suisse Group AG in Switzerland and DBS Group Holdings Ltd. in Singapore, as part of its contingency plans.
One of the sources told the FT that a private discussion took place between a director at each lender to discuss the potential benefits of such a deal, though no formal or informal bid approach has been made. No formal discussion about a potential merger with StanChart has taken place within Barclays' board.
A long-time adviser to Barclays said such a deal could see its investment bank benefiting from StanChart's large deposit base in Hong Kong and Singapore, while a second adviser to Barclays said a potential merger would add to both banks' capital requirements, potentially deterring such a deal, the FT said. Both Barclays and StanChart are global systemically important banks.
Bramson, who has built up a 5% voting stake in Barclays worth nearly £2 billion, is reportedly pushing for the closure all parts of the bank's investment banking activities that do not directly serve corporate clients to improve returns and reduce costs.
Meanwhile, two sources close to Barclays told Reuters that the bank is not exploring a potential merger with rivals. Separately, StanChart said in an emailed statement to Bloomberg News: "We are entirely focused on executing our strategy, and do not comment on this type of speculation."
StanChart shares on the Hong Kong stock exchange closed at HK$82.35 on May 23, up 3.45%, while shares on the London Stock Exchange were up 2.23% as of 9:42 a.m. London time at 783.00 pence. Barclays shares were down 0.14% as of 9:43 a.m. at 210.80 pence.
