Under the deal, about 2,800 of Tesco’s banking staff will transfer to Barclays.
Tesco said customers did not need to take any action and it would contact them over the coming months.
Tesco said customers did not need to take any action and it would contact them over the coming months.
It has also agreed a partnership, initially for 10 years, under which Barclays will market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand.
Shares in Tesco rose more than2% in early trading before falling back, and Barclays shares edged up slightly.
The supermarket’s chief executive, Ken Murphy, said the deal would strengthen Tesco’s finances and allow it to grow its core retail business, although the company said that the majority of the proceeds from the deal “will be returned to shareholders”.
That will also include a £250m special dividend that Tesco Bank paid to the supermarket group in August last year.
In addition, the deal will allow Tesco to release £100m that is tied up for regulatory reasons, which will be added to the pot to return to shareholders.
Tesco said customers did not need to take any action and it would contact them over the coming months.
Under the deal, about 2,800 of Tesco’s banking staff will transfer to Barclays.
It has also agreed a partnership, initially for 10 years, under which Barclays will market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand.
Tesco said customers did not need to take any action and it would contact them over the coming months.
Tesco said customers did not need to take any action and it would contact them over the coming months.
It has also agreed a partnership, initially for 10 years, under which Barclays will market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand.
Shares in Tesco rose more than2% in early trading before falling back, and Barclays shares edged up slightly.
The supermarket’s chief executive, Ken Murphy, said the deal would strengthen Tesco’s finances and allow it to grow its core retail business, although the company said that the majority of the proceeds from the deal “will be returned to shareholders”.
That will also include a £250m special dividend that Tesco Bank paid to the supermarket group in August last year.
In addition, the deal will allow Tesco to release £100m that is tied up for regulatory reasons, which will be added to the pot to return to shareholders.
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