Tesco PLC
1 November 2024
Tesco completes sale of banking operations to Barclays and
commences long-term strategic partnership
Following the announcement on 9 February 2024,
Tesco is pleased to confirm that it has completed the sale of its
banking operations and started its associated strategic partnership
with Barclays. The exclusive 10-year partnership provides customers
access to Tesco-branded banking products and services, combining
Tesco's market-leading brand, physical & digital reach and
relentless customer focus with Barclays' deep financial services
capabilities and expertise in commercial partnerships. The
partnership also creates the opportunity to develop new and
innovative products with Barclays under the Tesco-bank
brand.
On 17 October 2024, Tesco received approval from
the High Court of Justice of England and Wales for its banking
business transfer scheme application under Part VII of the
Financial Services and Markets Act 2000. The effective date of the
scheme is today, 1 November 2024, and in accordance with the court
approval, the banking operations of Tesco Personal Finance PLC have
been transferred to Barclays Bank UK PLC.
Tesco will retain all the existing insurance and
money services activities, including ATMs, travel money and gift
cards. These are capital-light, profitable businesses with a strong
connection to the core retail offer.
Having now completed the sale of its banking
operations, Tesco is pleased to confirm that it intends to return
£700m to shareholders via an incremental share buyback, being the
full cash proceeds and the additional net cash after the settlement
of certain regulatory capital amounts and after transaction costs.
This is expected to commence following completion of the final
tranche of the £1bn buyback programme which is currently
underway.
Ken Murphy,
Group Chief Executive Officer of Tesco,
commented:
"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.
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."
C.S.
Venkatakrishnan, Group Chief Executive of Barclays,
commented:
"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."
Vim Maru, Chief
Executive of Barclays UK, commented:
"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."
Enquiries
Tesco Investor Relations:
Chris Griffith
+44 (0) 1707 940 900
Andrew
Gwynn
+44 (0) 1707 942 409
Tesco Media:
Christine Heffernan
+44 (0) 330 678 0639
Teneo
+44 (0) 207 420 3143
Tesco PLC's LEI number is:
2138002P5RNKC5W2JZ46
