Following its February 2024 announcement, Tesco has officially completed the sale of its banking operations and initiated a 10-year strategic partnership with Barclays. This exclusive agreement, approved by the High Court of Justice of England and Wales on October 17, 2024, under the Financial Services and Markets Act 2000, took effect on November 1, 2024. Tesco’s banking business, Tesco Personal Finance PLC, has now fully transferred to Barclays Bank UK PLC.
The strategic partnership combines Tesco’s brand, extensive customer reach, and focus on customer experience with Barclays’ expertise in financial services and commercial partnerships. Together, the two institutions aim to offer Tesco-branded banking products and services, as well as develop innovative offerings for customers under the Tesco Bank brand.
Tesco will retain its profitable insurance and money services, such as ATMs, travel money, and gift cards, which align closely with its retail focus.
In light of the sale, Tesco plans to return £700 million to shareholders via an incremental share buyback, representing the full cash proceeds after regulatory capital adjustments and transaction costs. This new buyback program will follow the completion of Tesco’s ongoing £1 billion buyback initiative.
Ken Murphy, CEO of Tesco, stated, “We are delighted to be working alongside Barclays to unlock even greater value for Tesco Bank customers. Through our partnership, customers will access new and innovative offerings while continuing to benefit from Tesco Clubcard. I extend my heartfelt thanks to our colleagues at Tesco Bank for their dedication over the past 25 years. This new partnership with Barclays will build on their achievements.”
Barclays’ Group CEO, C.S. Venkatakrishnan, added, “This acquisition represents a significant step in our investment in the UK. We look forward to collaborating with Tesco Group on Tesco-branded financial services and warmly welcome all transferring Tesco Bank employees and customers to Barclays.”
Vim Maru, CEO of Barclays UK, noted, “This is an exciting milestone as we continue to grow Barclays UK. By combining our strengths with Tesco’s, we will offer enhanced benefits to customers and colleagues. The synergy of our brands, along with Tesco’s Clubcard, will support millions of households across the UK in meeting their financial needs.”
Similar News:
Citi and Google Cloud Partner to Accelerate Digital Transformation with AI and Cloud Solutions
