UK retailer Tesco has completed the sale of its banking operations and commenced its associated strategic partnership with Barclays.
The ten-year partnership with Barclays will provide customers with access to Tesco-branded banking products and services, the retailer noted.
It will combine Tesco’s brand, physical and digital reach, and customer focus with Barclays’ financial service capabilities and expertise in commercial partnerships.
The partnership will also pave the way for exploring innovative products with Barclays under the Tesco bank brand.
‘New Partnership With Barclays’
Tesco chief executive Ken Murphy commented, “This is a significant moment for all our colleagues at Tesco Bank, and I want to say a heartfelt thank-you for all their hard work, helping millions of loyal customers to manage their money for more than 25 years. Their dedication is relentless, and I know that this new partnership with Barclays will only build on their success.”
In October of this year, the UK retailer received approval from the High Court of Justice in England and Wales for its banking business transfer scheme application, under Part VII of the Financial Services and Markets Act 2000.
In accordance with court approval, the transfer came into effect on 1 November 2024.
Tesco added that it will retain all of its existing insurance and money service activities, including ATMs, travel money, and gift cards.
‘An Important Step’
CS Venkatakrishnan, group chief executive of Barclays, stated, “This acquisition is an important step in increasing our investment in the UK. We look forward to collaborating with Tesco Group on delivering Tesco-branded financial services. We are delighted to welcome all transferring Tesco Bank employees and customers to Barclays.”
Tesco also announced that it intends to return £700 million to shareholders via an incremental share buy-back programme.
This is expected to commence following completion of the final tranche of the £1 billion buy-back programme that is currently under way.
