Market Reaction - Tesco PLC

Publish Date: 09/02/2024

- Barclays to acquire Tesco Bank's retail banking operations, including credit cards, loans, and savings.

- Announced a 10-year partnership for Barclays to market Tesco-branded financial products.

- Tesco Bank to retain insurance, ATMs, travel money, and gift card operations.

- Deal includes GBP 8.3 billion in unsecured lending balances and transfer of 2,800 employees.

- Barclays will pay approximately GBP 600 million; Tesco to receive around GBP 1 billion in total.

- Transaction completion expected in the second half of 2024.

Tesco's share price moved by 1% today, a change within the typical market response for the shares in the absence of news. The expectation that a financial institution might acquire Tesco's Banking division likely influenced this movement. However, the Banking division has not exerted significant pressure on Tesco's overall business. The company is streamlining operations, shifting its focus to a food-first priority model.