Tesco Bank to be bought by Barclays in £700m deal
In a transaction valued at £700 million, Barclays is buying Tesco’s retail banking operations, marking a significant deal for the supermarket giant.
Barclays will assume control of Tesco Bank’s credit cards, loans, and savings accounts, while also committing to promoting Tesco-branded banking services.
Approximately 2,800 Tesco banking employees will transition to Barclays as part of the agreement.
Tesco assured its customers that no immediate action was required on their part, stating that communication would be forthcoming in the following months.
While Tesco will retain certain banking services such as insurance, ATMs, travel money, and gift cards, it has entered a partnership with Barclays, initially spanning a decade, for the marketing and distribution of credit cards, unsecured personal loans, and deposits using the Tesco brand.
The sale of the business is anticipated to yield Tesco around £600 million upfront, with an additional £100 million expected following the resolution of specific regulatory capital obligations and transaction expenses.