REG - Tesco PLC - Strategic partnership & sale of banking business

TescoAnnouncement

01/11/2024 07:30

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RNS Number : 4785K  Tesco PLC  01 November 2024

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

 

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