The British bank Barclays is considering moving its continental Europe headquarters from Dublin to Paris, which might be a further boost for the French capital’s efforts to develop as a major international financial hub following Brexit.

Barclays stated it was considering moving its European Union headquarters in order to “be closer to the balance of operations” of the division on the continent in an interim results statement for its Barclays Bank Ireland business, also known as Barclays Europe.

Since Britain’s vote to exit the European Union upended global power dynamics in financial services and ended the City of London’s unrestricted access to the union, forcing banks to create hubs in the EU to sustain services, Paris has emerged as one of the major winners.

The central bank of France reported last month that it had attracted more banks than anticipated after Brexit, which had helped the nation’s balance of payments.

A “small number of roles” would relocate to Paris as a result of any proposed transfer by Barclays, the memo stated, adding that initial consultation with regulators and other stakeholders was in progress.

According to the source, the relocation might take up to two years and wouldn’t include any client migration.

The group’s operations in the UK, where the bank’s global headquarters are in London, would also be unaffected, it was noted.

In contrast, Barclays has received non-binding offers to buy its German consumer banking arm from private equity firms like Warburg Pincus and Centerbridge, according to three individuals familiar with the situation who spoke to Reuters.

The first two sources, who spoke on the condition of anonymity, said that bidders are awaiting word on whether they have advanced to the second round of bidding for the operation, officially known as Barclaycard Germany, which has a price tag of about 500 million euros ($547 million).

Prior to the initial deadline of July 21, Pollen Street and a number of banks with locations in Germany and other parts of Europe expressed interest in a proposal, the two persons said; however, it is unclear if they are still in the running.

Centerbridge, Warburg Pincus, Pollen Street, and Barclays all declined to comment.

According to a fourth individual familiar with the situation, the decision to sell the German division is a component of a larger strategic evaluation of Barclays’ payment-related operations.

According to a Reuters report from June, the bank has hired a large consultancy to determine whether certain of its payment companies should be expanded, sold independently, or integrated with other providers.

All sources agreed that since private equity firms are likely to bid through a banking firm in their portfolio because only bidders with a banking licence are permitted to bid for the asset.

The first source claimed that Warburg Pincus is believed to be placing a bid through its Belgian Bank Aion, which it acquired in 2018, and that a deal would increase its loan book outside of Belgium.

According to the second source, Centerbridge is placing a bid using the German credit marketplace Auxmoney, which it acquired in 2020.

This source said that acquiring the German business would increase Auxmoney’s footprint in the credit card industry, which is close to consumer lending.

The Hamburg-based Barclays division reported a loan book, or assets, of 4 billion pounds ($5.1 billion) at the end of June. This division has 700 staff and around two million clients. In addition to loans for inexpensive things, it also provides credit cards.

(Adapted from Reuters.com)