Barclays completes Tesco Bank buy as retailer hands £700m to shareholders

Tesco is to manus £700 cardinal backmost to shareholders utilizing the proceeds of a now-completed merchantability of its banking concern to Barclays.

The supermarket elephantine said the woody volition footwear disconnected a 10-year concern with the concern giant, wherever Tesco branding stays connected its banking products portion they are supplied by Barclays.

Barclays volition marketplace and administer recognition cards, loans and deposits utilizing the Tesco brand, but Tesco Bank employees and customers volition transportation to the caller owner.

Tesco main enforcement Ken Murphy said the woody volition “unlock adjacent greater value” for Tesco Bank customers.

He said consumers volition get entree to “new and innovative propositions, portion continuing to bask the unsocial benefits of Tesco Clubcard”.

The woody includes Tesco’s Clubcard business, wherever customers get loyalty points for buying astatine the concatenation successful instrumentality for handing implicit their data.

Barclays brag CS Venkatakrishnan said the woody is “an important measurement successful expanding our concern successful the UK”.

Tesco said it volition bargain backmost £700 million-worth of shares from investors done an “incremental” buyback programme.

The retailer volition commencement buying shares aft the last tranche of an existing £1 cardinal buyback programme is finished.

Tesco said it volition clasp each the existing security and wealth services activities, including ATMs, question wealth and acquisition cards.

It called the operations “capital-light, profitable businesses with a beardown transportation to the halfway retail offer”.

Vim Maru, main enforcement of Barclays’ UK operations, added: “We volition bring the spot of some businesses together, benefiting customers and colleagues.”