Barclays has agreed to buy the retail banking arm of Tesco Bank, including the acquisition of its approximately 2,800 employees, it has been announced.
It will pay around £600m for Tesco Bank customer deposits and loans, as well as the ability to offer Tesco-branded credit cards and loans.
Barclays said the acquisition is a “further demonstration of the investment we continue to make in our UK consumer business”.
Chief executive CS Venkatakrishnan added: “We look forward to working closely with the Tesco team over the coming months to enable a smooth transition and, upon completion of the transaction, we look forward to welcoming Tesco Bank colleagues and customers to Barclays. . “
And Tesco boss Ken Murphy said the merger will deliver “greater value for customers and our business”.
He said: “By working with one of the UK's leading banks, we can offer customers new and innovative propositions, which will continue to benefit from Tesco Clubcard's unique vision and digital capabilities.”
