Barclays has signed an agreement to sell its precious metals storage business in the UK to ICBC Standard Bank.

ICBC Standard Bank, which is a union of Chinese ICBC and the Standard Bank Group, will acquire the precious metals vaulting business for an undisclosed sum to expand its commodities capabilities in metals clearing and storage services.

The vault is one of the largest in Europe and is used to store gold, silver, platinum and palladium in support of the London Market.

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The transaction, subject to consent, is expected to complete in July.

ICBC will join a limited number of banks operating their own vault in the UK, and is the only Chinese bank to do so.

Mark Buncombe, head of commodities said: