By Max Colchester 

Barclays PLC has bought out French insurer CNP Assurances' 50% stake in their Spain-based joint-venture, CNP Barclays Vida y Pensiones, for EUR453 million ($554 million), including a special dividend.

The deal, which remains subject to regulatory approval, is expected to be completed before the end of the first half of 2015.

In 2009 Barclays and CNP Assurances entered into a 25-year joint-venture as the two companies sought to expand their life insurance business across Spain, Portugal and Italy.

However, Barclays reined in its global ambitions and in September announced it would sell its Spanish retail banking division to Caixabank SA at a loss. CNP Assurance was subsequently able to exercise an option to exit the joint-venture with Barclays as there has been a "transformation" in the business following the sale, according to one person familiar with the matter.

A spokeswoman for Barclays confirmed the deal was taking place.

The Spanish life insurance business currently resides in Barclay's noncore division. CNP Assurances Chief Executive Frédéric Lavenir said in a statement that the French insurer remained "committed to expanding in Southern Europe" through its Spanish subsidiary, CNP Partners.

Write to Max Colchester at max.colchester@wsj.com

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