Barclays has successfully completed the acquisition of Tesco Bank, in a move that will affect millions with savings, credit cards, and loans. The deal encompasses Tesco’s credit card portfolio and unsecured personal loans, valued at around £8.3 billion, along with roughly £6.7 billion in customer deposits.
The takeover, announced earlier this year, was finalised on November 1 after getting the green light from regulators and the High Court. Tesco Bank customers can rest assured that they can continue using their services as usual.
Despite the change in management, Tesco branding will also continue to feature on banking products such as credit cards, loans, and savings accounts, which are now under Barclays’ operation post-deal completion. Barclays is set to issue new credit cards, loans, and savings accounts, all carrying the familiar Tesco brand. Tesco Bank closed down all its current accounts in 2021.
However, Martin Lewis’ MoneySavingExpert.com (MSE) team has advised customers to review their savings rates to see if better options are available elsewhere. MSE said: “Barclays typically offers lower interest rates on your savings compared to Tesco Bank. Tesco Bank says there are no changes to its products as a result of this move, but keep an eye on your rate and switch if you can get more elsewhere.”
The partnership does not include Tesco ATMs, gift cards, insurance and travel money services. However, it does include Clubcard Pay+, a prepaid debit card, according to the Mirror.
Tesco plans to return £700million to shareholders using the proceeds from the deal. Tesco’s CEO, Ken Murphy, stated that the deal will ‘unlock even greater value’ for Tesco Bank customers, while giving them access to ‘new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard’.
Ken Murphy, Group Chief Executive Officer of Tesco, said: “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. This is a significant moment for all our colleagues at Tesco Bank and I want to say a heartfelt thank you for all their hard work.”
Vim Maru, Chief Executive of Barclays UK, said: “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.”
