Barclays has completed the £600 million acquisition of Tesco Bank’s retail banking business.
This comes after high court approval of the deal in October. The agreement was initially announced in February, with the partnership lasting an initial 10 years.
Barclays will now manage credit cards, unsecured personal loans, deposits and the operating infrastructure under the Tesco brand. The finance wing of the supermarket will keep its insurance and money services such as ATMs, travel money and gift cards.
The agreement sees around 2,800 Tesco Bank employees working on banking products transferring to Barclays, from the 3,540 people currently work for Tesco’s banking wing.
The supermarket bank was previously reported to have been mulling the sale early last year.
C.S. Venkatakrishnan, group chief executive of Barclays, said: "This acquisition is an important step in increasing our investment in the UK.”
Vim Maru, chief executive of Barclays UK, added: "Today marks a significant step as we continue to grow Barclays UK. We will bring the strength of both businesses together, benefitting customers and colleagues. I am excited that the combination of our brands, alongside the benefits of Clubcard and its loyalty scheme, will support millions of households across the UK with their financial needs."
Ken Murphy, Group Chief Executive of Tesco, commented: "We are delighted to be working alongside Barclays to unlock even greater value for Tesco Bank customers. Through our strategic partnership, customers will have access to new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard.”