British supermarket giant Sainsbury's has announced the sale of its automated teller machine (ATM) business to NoteMachine, a Brink's Company, marking another step in the retailer's ongoing efforts to streamline its banking operations and reduce costs.

The deal, which is expected to be finalised by May 2025, will see NoteMachine take ownership and management of approximately 1,370 cash machines across Sainsbury's locations nationwide. Under the terms of the agreement, all ATMs will remain in their current positions, ensuring customers continue to have free and convenient access to cash.

Simon Roberts, chief executive officer at Sainsbury's, expressed satisfaction with the arrangement, stating, "We are really pleased that we can keep offering our customers free access to cash at all of our existing locations while also simplifying our banking business and reducing our costs. We're confident that NoteMachine is the right partner for us and our customers."

The sale comes on the heels of Sainsbury's January announcement of a phased withdrawal from its core banking business. In June, the company struck a deal to sell the majority of its banking operation to NatWest, while retaining commission-income businesses such as insurance and travel money.

Steve Makaritis, chief executive officer for NoteMachine, a Brink's Company, welcomed the partnership, saying, "This agreement aligns perfectly with our mission to make banking easier, more convenient and accessible for all. By expanding our ATM network, we are taking another step toward providing exceptional service, whether in urban or rural areas."

The long-term partnership is structured to provide Sainsbury's with a shared commission income stream. This move is part of the retailer's broader strategy to simplify its banking business and achieve significant cost savings. In February, Sainsbury's announced its aim to secure an additional £1 billion in operating cost savings over the next three years to fuel investment in its core food offer.

While financial details of the ATM business sale were not disclosed, the deal represents a significant milestone in Sainsbury's ongoing transformation of its banking arm. As Britain's second-largest grocer continues to focus on its primary retail operations, this strategic divestment underscores the company's commitment to streamlining its business model and enhancing operational efficiency.

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