Future Of British Business

Barclays to Acquire Tesco’s Retail Bank, Grocer Vows Buyback

  • Lender to pay £600 million for deal set to close in late 2024
  • Move part of Barclays’ efforts to expand in retail banking
A Tesco Bank ATM in London.Photographer: Betty Laura Zapata/Bloomberg
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Barclays Plc said it will acquire much of Tesco Plc’s banking business as the lender seeks to establish a greater foothold in retail banking in the UK.

Barclays expects to pay about £600 million ($758 million), according to a statementBloomberg Terminal on Friday. Tesco separately said it expects to receive around £1 billion in cash from the sale — which includes the release of regulatory capital and an earlier dividend paid by Tesco Bank — and it will use the majority of that for a share buyback.