- Barclays PLC (NYSE:BCS) extends its reach in Britain's housing market with the acquisition of specialist lender Kensington Mortgage Company for 2.3 billion pounds ($2.8 billion), reported Reuters.
- Kensington is being sold by its private equity owners, Blackstone Inc (NYSE: BX) and Sixth Street.
- The deal would be funded from existing resources and reduce its core capital ratio by around 12 basis points, stated Barclays.
- According to Barclays, the final price will be determined by the size of Kensington's mortgage portfolio at the time the transaction closes, which is expected to be ~2 billion pounds.
- The transaction is expected to complete later this year or early next.
- "The transaction reinforces our commitment to the UK residential mortgage market and presents an exciting opportunity to broaden our product range and capabilities," stated Matt Hammerstein, CEO of Barclays Bank UK.
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Price Action: BCS shares are trading higher by 1.96% at $7.81 during the premarket session on Friday, and BX closed higher by 1.39% at $94.65 on Thursday.
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