Barclays Bank has announced it has entered into an agreement to acquire the retail banking business of Tesco.
The sale only includes its banking operations in credit cards, loans and savings. Tesco bank has around five million customers. The acquisition and partnership are subject to regulatory approval and expected to complete in the second half of 2024. Once completed. Barclays will welcome approximately 2,800 Tesco staff to Barclays.
Tesco said the deal marked the start of a strategic partnership with Barclays that would last for an initial 10 years. The partnership will allow us to offer customers Tesco-branded banking products and services, benefiting from the power of Tesco Clubcard, the UK’s largest loyalty programme, in addition to exploring other opportunities to offer value to Tesco and Barclays customers,” the statement said.
Under the terms of the agreement, we will receive annual income for the use of the Tesco brand, for growing the customer base through Tesco channels and as a result of Barclays’ participation in the Tesco Clubcard programme.
Coimbatore Sundararajan Venkatakrishnan, Group Chief Executive of Barclays, said “This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses. We are able to bring our expertise in partnership cards developed over decades in the US to enhance further the highly successful Tesco Clubcard loyalty scheme.
“This partnership with Tesco is a further demonstration of the investment we continue to make in our UK consumer business. We are looking forward to working closely with the team at Tesco over the coming months to enable a smooth transition and, subject to completion of the transaction, we look forward to welcoming Tesco Bank colleagues and customers to Barclays.”
Ken Murphy, Tesco’s Chief Executive, said “Tesco Bank is a strong business that has helped millions of loyal customers to manage their money for more than 25 years.
“As we look to the future, our aim is to be the best provider of financial services in the UK, with this strategic transaction and partnership with Barclays unlocking greater value for customers and for our business.”