British multinational universal bank Barclays has announced the completion of its acquisition of the retail banking business of Tesco Personal Finance. Following this announcement, the acquired business will include credit cards, unsecured personal loans, deposits, and the overall operating infrastructure.

The latter will be operated under the ownership and management of Barclays UK, following the completion of the acquisition. In addition, both financial institutions will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well. More information on the Tesco Bank acquisition In conjunction with the acquisition, Barclays UK has also entered into a long-term, exclusive strategic partnership with Tesco Stores Limited for an initial period of 10 years to market.

The deal is expected to distribute credit cards, unsecured personal loans, and deposits using the Tesco brand, as well as explore other possibilities to offer financial services to customers through Tesco’s distribution channels and on the open market. At the same time, the collaboration builds on Barclays UK’s existing strategic deal with other UK retail, client electronics, and loyalty program brands. Following the completion of the transaction, the business is expected to continue to operate under the `Tesco Bank` brand, under the management of Barclays UK.

In addition, Barclays UK is set to integrate the acquired Tesco Bank business over time, while the transaction will be accretive to Group RoTE post-integration. The initiative represents an important step in increasing Barclays’ overall investment in the UK region. Having now completed the sale of its banking operations, Tesco intends to return GBP 700 million to shareholders via an incremental share buyback, being the full cash proceeds and the additional net cash after the settlement of certain capital amounts and payments costs.

This process is expected to commence following the completion of the final tranche of the GBP 1 billion buyback programme which is underway at the moment. Source: Link .