British banking giant Barclays, which over the weekend walked away from a merger deal with Lehman Brothers, said on Wednesday that it has reached a pact to buy certain assets of the beleaguered US insurance giant for $1.75 billion.

Barclays, the third largest bank of Britain said it would acquire the North American investment banking and capital markets businesses of Lehman Brothers.

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The bank said it would acquire trading assets with an estimated value of $72 billion and liabilities worth $68 billion for a cash consideration of $0.25 billion.

Barclays will also buy Lehman's New York headquarters and two data centres in New Jersey for a combined value of $1.5 billion.

The acquisition, which covers operations of about 10,000 Lehman staff is subject to approval by regulators and New York's bankruptcy court.