Barclays has completed its £600 million acquisition of Tesco Bank's retail banking business, marking the start of a new ten-year strategic partnership between the two British firms.

The deal, which was first announced in February 2024, includes the transfer of credit cards, unsecured personal loans, deposits and operating infrastructure to Barclays Bank UK PLC. The acquired business will continue to operate under the Tesco Bank brand.

The transaction involves £4.2 billion of gross credit card receivables, £4.2 billion of gross unsecured personal loans, and £6.8 billion in customer deposits. Barclays will integrate the acquired business over time, with approximately 2,800 Tesco Bank employees transferring to the bank.

Barclays group chief executive C.S. Venkatakrishnan said: "This acquisition is an important step in increasing our investment in the UK. We look forward to collaborating with Tesco Group on delivering Tesco-branded financial services. We are delighted to welcome all transferring Tesco Bank employees and customers to Barclays."

Under the partnership, Barclays will market and distribute financial products using the Tesco brand, while customers will retain access to Tesco Clubcard benefits. The deal is expected to generate a pre-tax profit of around £300 million in the fourth quarter of 2024.

Tesco group chief executive Ken Murphy 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."

Tesco will retain certain parts of its banking operation, including insurance and money services such as gift cards, travel money and ATMs. These services will undergo rebranding over the next two years.

Barclays UK chief executive Vim Maru 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."

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