Barclays PLC has announced the acquisition of Tesco's retail banking business, including credit cards, unsecured personal loans, and deposits, as well as a long-term strategic partnership with Tesco. This partnership will allow Barclays to market and distribute financial services using the Tesco brand, tapping into Tesco's large customer base and loyalty scheme. The transaction involves the acquisition of approximately £8.3 billion of unsecured lending balances and is expected to offer attractive financial returns over the term of the agreements.

The acquisition includes approximately 2,800 employees and is expected to be integrated into Barclays UK's operational infrastructure over time. If completed at the end of July 2024, Barclays UK expects to acquire approximately £4.2 billion of gross credit card receivables, £4.1 billion of gross unsecured personal loans, and approximately £6.7 billion in customer deposits. The consideration payable by Barclays UK at completion is expected to be approximately £600 million.

The acquisition is subject to court sanction and regulatory approvals or non-objection, with completion expected in H2 2024. Barclays expects that the transaction will not materially impact the planned financial returns or distributions of Barclays. The acquisition is being financed from Barclays' existing resources and is expected to reduce Barclays' CET1 ratio by approximately 0.3% upon completion.

C.S. Venkatakrishnan, Group Chief Executive of Barclays, expressed that the strategic relationship with Tesco will create new distribution channels for Barclays' unsecured lending and deposit businesses. Ken Murphy, Group Chief Executive of Tesco, stated that the partnership with Barclays will unlock greater value for customers and the business, bringing new and innovative propositions to customers.