Barclays buys Tesco Bank with £700 million handed to shareholders

Barclays has bought Tesco Bank and the supermarket giant will giver shareholders £700 million as the deal has now been completed.

Tesco will now start a 10-year partnership with Barclays and Tesco branding will remain on the products despite being provided by the banking giant.

Tesco chief executive Ken Murphy said this deal will “unlock even greater value” for their banking customers and consumers will have access to “new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard.”

Barclays boss CS Venkatakrishnan said this “an important step in increasing our investment in the UK.”

Vim Maru, chief executive of Barclays’ UK operations, added, “We will bring the strength of both businesses together, benefiting customers and colleagues.”