www.personneltoday.com | Adam McCulloch
About 2,800 of Tesco Bank staff are to transfer to Barclays.
The UK’s third largest bank by market share is buying Tesco’s retail banking operations in a £600m deal.
The retailer said Barclays would work closely with the supermarket to support staff who were being transferred. These will include Tesco Bank’s senior management team.
Barclays will take over Tesco Bank’s credit cards, loans and savings accounts and will market Tesco-branded banking services.
The supermarket has retained some of Tesco Bank’s services, including insurance, ATMs, travel money and gift cards.
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.
The supermarket’s chief executive, Ken Murphy, said the deal would strengthen Tesco’s finances and allow it to grow its core retail business. The company said that the majority of the proceeds from the deal would be returned to shareholders.
Barclays Group chief executive C.S. Venkatakrishnan said: “This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses.
“We are able to bring our expertise in partnership cards developed over decades in the US to enhance further the highly successful Tesco Clubcard loyalty scheme.”
Barclays said it would integrate the business into its own over time.
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