LONDON (AP) — Barclays PLC said yesterday it is buying the bank arm of British insurance company Standard Life PLC for £226 million ($370 million), building up its domestic mortgage and savings business.

Barclays said it will acquire a savings book of around £5.5 billion and a mortgage book with outstanding balances of approximately £8.8 billion under the deal.

Around 270 employees at Standard Life Bank will transfer to Barclays.

In a separate deal, Barclays UK Retail Banking and Standard Life have also agreed heads of terms on a strategic agreement to explore joint opportunities in the UK retail long-term savings and investments sector.

The initial focus is expected to be on the development of a multi-channel, simplified pension product.

"The acquisition of Standard Life Bank is a good fit with Barclays existing UK retail banking business," said Frits Segers, chief executive of Barclays Global Retail and Commercial Banking.

"We also look forward to working together with Standard Life in the long-term savings and investments sector," he added.