More

    Barclays buys Tesco’s bank unit

    Photo: iStock

    British bank Barclays on Friday said it had agreed to buy the retail banking operations of Tesco, as the supermarket giant concentrates on its core food business.

    Barclays will pay up to £700 million for Tesco Bank – handing it a portfolio of credit cards, other loans and deposits, according to statements from the two companies.

    Barclays added that it would retain Tesco Bank’s 2,800 staff, including senior management, as well as the brand representing Britain’s largest retailer.

    Tesco said it would return the majority of cash proceeds from the sale to its shareholders.

    “Similar to our acquisition of Kensington Mortgages last year, this partnership with Tesco is a further demonstration of the investment we continue to make in our UK consumer business,” Barclays chief executive C.S. Venkatakrishnan said in a statement.

    The deal is due to complete in the second half of this year, subject to regulatory approvals.

    Tesco does not have bank branches but its supermarkets house ATMs, which Barclays said it would retain.

    “The transaction will… significantly reduce our financial liabilities, in turn strengthening our balance sheet and allowing us to focus on continuing to grow our core retail business,” said Tesco chief executive Ken Murphy.

    Latest

    Dual armed robberies hit Leeds stores

    Two armed robberies in stores have rattled Leeds as...

    Brothers Drinks to continue as official cider of Glastonbury Festival

    Brothers Drinks Co. has signed a new contract to...

    Rude Health reveals new Organic Oat Barista

    Healthy and natural food and drink pioneers, Rude Health,...

    JTI rewards retailers with £250k prize pot

    Five win £50k each in the Mayfair Gold ‘Go...

    Don't miss

    Dual armed robberies hit Leeds stores

    Two armed robberies in stores have rattled Leeds as...

    Brothers Drinks to continue as official cider of Glastonbury Festival

    Brothers Drinks Co. has signed a new contract to...

    Rude Health reveals new Organic Oat Barista

    Healthy and natural food and drink pioneers, Rude Health,...

    JTI rewards retailers with £250k prize pot

    Five win £50k each in the Mayfair Gold ‘Go...

    Retailers in dismay over possible DRS delay until 2028

    Major retailers have expressed disappointment over the delay...

    Mohsin Issa denies rift with brother Zuber, says soon to hand over Asda leadership

    By Bill Jacobs, Local Democracy Reporting Service Mohsin Issa, the billionaire owner of Asda, has denied there is a rift with his brother and business...

    Sainsbury’s to cut 1,500 jobs

    Sainsbury’s announced on Thursday (29) a restructure that could impact 1,500 roles within the business. The proposals could affect the company’s store support structure, three...

    Lidl launches ‘first of its kind’ bottles return scheme in Glasgow

    Ahead of much-delayed launch of national deposit return scheme, Lidl today (8) debuted its own bottle return scheme in Glasgow. Lidl has launched a trial...