Barclays has bought Lehman Brothers’ North American investment banking and capital markets businesses.

The deal, subject to US Court approval, is to buy Lehman Brothers North American investment banking and capital markets operations and supporting infrastructure with trading assets valued at £40bn (US$72bn) and trading liabilities with a current estimated value of £38bn (US$68bn).

Barclays to buy NY HQ building
It has paid £140m (US$250m) in cash for the operations and a further £800m (US$1.45bn) for its New York headquarters and two data centres in New Jersey.

Barclay’s said the deal, which includes around 10,000 employees, will give Barclays a full service across equity capital markets, debt capital markets, mergers and acquisitions, commodities trading and foreign exchange.

The Board of Barclays expects the deal to lead to shareholders increasing their investment in Barclays which will lead to a subscription of at least £0.6bn (US$1bn) of additional equity.

Strategy acceleration
John Varley, Barclays Group chief executive, said: 'The proposed acquisition of Lehman Brothers North American investment banking and capital market operations accelerates the execution of our strategy of diversification by geography and business in pursuit of profitable growth on behalf of our shareholders, in particular increasing the percentage of Barclays earnings sourced in North America. This transaction delivers the strategic benefits of a combination with Lehman Brothers core franchise, whilst meeting Barclays strict financial criteria, and strengthening our capital ratios.'

Herbert H McDade III, Lehman Brothers chief operating officer, said: 'Lehman Brothers strength has always been our client franchise. With this transaction, we have the opportunity to continue the growth and development of our US investment banking and capital market franchises with one of the leading financial institutions in the world.'