Barclays has successfully finalized its £600 million acquisition of Tesco Bank’s retail banking division following high court approval of the deal in October. The agreement, first announced in February, includes a partnership set to last an initial 10 years.
As part of the arrangement, Barclays will now oversee the management of credit cards, unsecured personal loans, deposits, and the operational infrastructure under the Tesco brand. However, Tesco will retain its insurance and money services, such as ATMs, travel money, and gift cards.
Approximately 2,800 employees from Tesco Bank, who are involved in banking products, will transition to Barclays, reducing the workforce at Tesco’s banking operation from the current 3,540.
The supermarket bank had been considering the sale of its banking unit as early as last year. C.S. Venkatakrishnan, group chief executive of Barclays, stated, “This acquisition is an important step in increasing our investment in the UK.” Vim Maru, chief executive of Barclays UK, expressed enthusiasm about the merger, commenting, “Today marks a significant step as we continue to grow Barclays UK. We will bring the strength of both businesses together, benefitting customers and colleagues. I am excited that the combination of our brands, alongside the benefits of Clubcard and its loyalty scheme, will support millions of households across the UK with their financial needs.”
Ken Murphy, Group Chief Executive of Tesco, added, “We are delighted to be working alongside Barclays to unlock even greater value for Tesco Bank customers. Through our strategic partnership, customers will have access to new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard.”