British supermarket group Sainsbury's said it has sold its cash machine operation in a further move to simplify its banking business and reduce costs.
The second largest grocer after Tesco, Sainsbury's said on Wednesday the ATM business, comprising 1,370 cash machines, has been sold to NoteMachine, which is owned by Brink's and is one of the UK's biggest ATM operators.
Phased Withdrawal
Sainsbury’s announced a phased withdrawal from its core banking business in January and in June struck a deal to sell most of its banking operation to NatWest, though it retained its commission-income businesses, including insurance, travel money and its automated teller machines (ATMs), or cash machines.
The deal, expected to complete in May 2025, will see all ATMs remaining open and in position at their existing sites, while Sainsbury's and NoteMachine will share commission. Financial details of the deal were not disclosed.
Core Food Offer
In February, Sainsbury's said it was seeking a further 1 billion pounds ($1.34 billion) of operating cost savings over the next three years to fuel investment in its core food offer.
Under the terms of the deal, NoteMachine, a Brink’s Company, will assume ownership and management of Sainsbury’s ATM business, which includes around 1,370 ATMs nationwide. All ATMs will remain open and in position at the existing sites, meaning customers will still receive convenient, free access to cash, with no change to how they currently withdraw their money.
Simon Roberts, Chief Executive at Sainsbury's, said, “We are really pleased that we can keep offering our customers free access to cash at all of our existing locations while also simplifying our banking business and reducing our costs. We’re confident that NoteMachine is the right partner for us and our customers.”
Additonal reporting by ESM
