(Reuters) – British bank Barclays will buy most of the banking activities of British retail group Tesco for around 600 million pounds (702.42 million euros), the two companies announced on Friday.
Barclays will take over Tesco’s existing banking businesses in credit cards, loans and savings, adding £8.3 billion of unsecured loans and around £6.7 billion of deposits.
Tesco will retain Tesco Bank’s other businesses including insurance, ATMs, gift cards.
Barclays will be able to offer banking products and services under the Tesco brand, including the Clubcard loyalty program, for an initial period of ten years. The distributor will receive commissions of 50 million pounds per year.
Around 2,800 Tesco employees will move under the Barclays banner.
The acquisition and partnership, which are subject to regulatory approval, are expected to be finalized in the second half of 2024.
Barclays publishes its results on February 20, in a context of concern about the underperformance of its stock compared to its competitors.
(Reporting Yadarisa Shabong in Bangalore, James Davey and Iain Withers in London; French version Gaëlle Sheehan)
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