Barclays and CIBC announced that they are in advanced discussions which are intended to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean to create FirstCaribbean International Bank. Implementation of the combination would be subject to required approvals from government and regulatory authorities.

FirstCaribbean International Bank would bring together two complementary and leading financial services businesses in the Caribbean, offering customers enhanced products, improved services and extended access to banking services. It would establish FirstCaribbean International Bank as a significant Caribbean presence and enable it to play a key role in the region.

Michael Mansoor, President and CEO of CIBC West Indies Holdings Ltd, said “Our goal would be to establish FirstCaribbean as a market leader in service, products, ease of access and innovation. With a combined history of 225 years of experience in the region we have a clear understanding of the business and consumer needs in this diverse group of nations. This will be a bank of the Caribbean, for the Caribbean, with connections to the world.”

Under the structure of the proposed transaction, it is intended that Barclays and CIBC would each own approximately 45 per cent of the ordinary share capital of FCIB, with the remainder held publicly. It is the intention of CIBC and Barclays to increase the public share holdings of FCIB beyond the initial 10 per cent to up to 20 per cent as soon as practicable. FCIB would retain the listings of CIBC West Indies Holdings Limited in Barbados, Trinidad and Tobago and Jamaica.

Barclays Private Banking and CIBC Wealth Management businesses and their clients are not included in the scope of the discussions and would remain under their respective Barclays and CIBC ownership.

Barclays and CIBC believe this combination would provide benefits and opportunities for customers, staff and the businesses, which both say could be achieved by either operation on a standalone basis.

Charles Middleton, Barclays Regional Director of the Caribbean and Bahamas said, “We intend FirstCaribbean to be one of the leading banks in the Caribbean. Its size and diversity should provide our staff with a wide range of career opportunities. It is also the intention to offer staff a share purchase plan that will allow them to participate in the future growth of the company.”

Barclays is being advised by Credit Suisse First Boston, CIBC is being advised by CIBC World Markets.