Title: Barclays to Acquire Tesco’s Retail Banking Branch for $760 Million

Introduction:
In a recent deal, Barclays has announced its agreement to purchase Tesco’s retail banking branch for a consideration of approximately $760 million. This move allows the U.K. grocer to shift its focus back to its core food offering and return cash to its shareholders.

Background:
Tesco, one of the largest retailers in the U.K., had expanded into the banking sector in 1997 with the launch of Tesco Bank. However, in recent years, the company has faced challenges in its banking division, including a cyber attack in 2016 and a £235 million fine for misconduct in 2017. As a result, Tesco has been looking to sell its banking branch and refocus on its core business.

Details of the Deal:
Under the terms of the agreement, Barclays will acquire Tesco Bank’s 2.5 million customer accounts, including current accounts, mortgages, and personal loans. The deal also includes the transfer of £8.5 billion in deposits and £9.2 billion in outstanding loans to Barclays. In addition, around 4,000 Tesco Bank employees will be transferred to Barclays as part of the deal.

Benefits for Tesco:
By selling its banking branch, Tesco can now concentrate on its core food offering, which accounts for the majority of its revenue. This move aligns with the company’s strategy to simplify its business and improve profitability. Tesco  

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