Barclays Completes £600M Acquisition of Tesco Bank, Strengthening UK Market Presence
Barclays completes its £600M acquisition of Tesco Bank, bringing 2,800 employees and billions in assets under its umbrella. In a ten-year partnership, Barclays will manage Tesco’s banking services, while Tesco plans a shareholder buyback of £700M, following its ongoing £1B program.
November 1, 2024 – Barclays has successfully finalized its £600 million acquisition of Tesco Bank, receiving high court approval on October 17. This landmark deal initiates a ten-year partnership, positioning Barclays to operate Tesco’s banking services while Tesco retains control of its insurance, ATMs, and travel money offerings.
The acquisition brings 2,800 Tesco Bank employees into Barclays, along with billions in deposits, credit card accounts, and personal loans. Tesco, meanwhile, plans to return £700 million to shareholders through a new buyback following the completion of its ongoing £1 billion share repurchase program.
Ken Murphy, CEO of Tesco, highlighted the benefits of the partnership, stating, “Our customers will gain access to innovative services and enjoy the advantages of the Tesco Clubcard.” This collaboration, he noted, aims to offer enhanced financial options to Tesco’s extensive customer base.
Barclays Group CEO, C.S. Venkatakrishnan, expressed enthusiasm for the merger, saying, “This acquisition strengthens our commitment to the UK market, allowing us to serve even more customers with expanded financial services.” He welcomed the addition of Tesco Bank’s employees and customers, underscoring Barclays’ intent to drive value for its new clientele.
Following the announcement, Barclays’ shares reached a nine-year high, buoyed by a 18% jump in annual pre-tax profit, exceeding analyst forecasts. With this acquisition, Barclays aims to leverage its expertise and Tesco’s strong brand presence to offer accessible, comprehensive financial solutions to millions of UK households.